Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2018 | Feb. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jan. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AOBC | |
Entity Registrant Name | AMERICAN OUTDOOR BRANDS CORP | |
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 | 54,129,960 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 38,192 | $ 61,549 |
Accounts receivable, net of allowance for doubtful accounts of $1,131 on January 31, 2018 and $598 on April 30, 2017 | 74,764 | 108,444 |
Inventories | 162,296 | 131,682 |
Prepaid expenses and other current assets | 7,020 | 6,123 |
Income tax receivable | 9,150 | 10,643 |
Total current assets | 291,422 | 318,441 |
Property, plant, and equipment, net | 153,580 | 149,685 |
Intangibles, net | 118,189 | 141,317 |
Goodwill | 191,162 | 169,017 |
Other assets | 11,068 | 9,576 |
Assets, Total | 765,421 | 788,036 |
Current liabilities: | ||
Accounts payable | 35,275 | 53,447 |
Accrued expenses | 35,729 | 51,686 |
Accrued payroll and incentives | 10,071 | 21,174 |
Accrued income taxes | 164 | 726 |
Accrued profit sharing | 600 | 13,004 |
Accrued warranty | 5,109 | 4,908 |
Current portion of notes and loans payable | 6,300 | 6,300 |
Total current liabilities | 93,248 | 151,245 |
Deferred income taxes | 10,945 | 25,620 |
Notes and loans payable, net of current portion | 231,659 | 210,657 |
Other non-current liabilities | 18,601 | 7,352 |
Total liabilities | 354,453 | 394,874 |
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, 72,296,233 shares issued and 54,129,371 shares outstanding on January 31, 2018 and 72,017,288 shares issued and 53,850,426 shares outstanding on April 30, 2017 | 72 | 72 |
Additional paid-in capital | 250,439 | 245,865 |
Retained earnings | 381,628 | 369,164 |
Accumulated other comprehensive income | 1,204 | 436 |
Treasury stock, at cost (18,166,862 shares on January 31, 2018 and April 30, 2017) | (222,375) | (222,375) |
Total stockholders’ equity | 410,968 | 393,162 |
Liabilities and Equity, Total | $ 765,421 | $ 788,036 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,131 | $ 598 |
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 | 72,296,233 | 72,017,288 |
Common stock, shares outstanding | 54,129,371 | 53,850,426 |
Treasury stock, shares | 18,166,862 | 18,166,862 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | ||||
Income Statement [Abstract] | |||||||
Net sales | [1] | $ 157,376 | $ 233,523 | $ 434,825 | $ 674,002 | ||
Cost of sales | [1] | 110,459 | 134,212 | 296,477 | 389,517 | ||
Gross profit | [1] | 46,917 | 99,311 | 138,348 | 284,485 | ||
Operating expenses: | |||||||
Research and development | 3,148 | 2,764 | 8,680 | 7,614 | |||
Selling and marketing | 16,142 | 15,052 | 43,210 | 36,773 | |||
General and administrative | 21,785 | 31,286 | 75,826 | 85,210 | |||
Total operating expenses | 41,075 | 49,102 | 127,716 | 129,597 | |||
Operating income | [1] | 5,842 | 50,209 | 10,632 | 154,888 | ||
Other (expense)/income, net: | |||||||
Other (expense)/income, net | 87 | (8) | 1,382 | (37) | |||
Interest expense, net | (2,999) | (1,939) | (8,353) | (6,128) | |||
Total other (expense)/income, net | (2,912) | (1,947) | (6,971) | (6,165) | |||
Income from operations before income taxes | 2,930 | 48,262 | 3,661 | 148,723 | |||
Income tax (benefit)/expense | [1] | (8,465) | [2] | 15,809 | (8,803) | [2] | 48,562 |
Net income | 11,395 | 32,453 | 12,464 | 100,161 | |||
Comprehensive income: | |||||||
Change in unrealized income on interest rate swap | 853 | 1,524 | 1,089 | 1,929 | |||
Other comprehensive income, before income taxes | 853 | 1,524 | 1,089 | 1,929 | |||
Income tax expense on other comprehensive income | (234) | (558) | (321) | (692) | |||
Other comprehensive income, net of tax | 619 | 966 | 768 | 1,237 | |||
Comprehensive income | $ 12,014 | $ 33,419 | $ 13,232 | $ 101,398 | |||
Net income per share: | |||||||
Basic | $ 0.21 | $ 0.58 | $ 0.23 | $ 1.78 | |||
Diluted | $ 0.21 | $ 0.57 | $ 0.23 | $ 1.75 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 54,122 | 56,342 | 54,024 | 56,208 | |||
Diluted | 54,657 | 57,127 | 54,830 | 57,166 | |||
[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] | Amounts include an income tax benefit of approximately $9.4 million, primarily caused by the effect of Tax Reform, which resulted in the remeasurement of deferred tax assets and liabilities at lower enacted corporate federal tax rates. |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Changes in Stockholders' Equity - 9 months ended Jan. 31, 2018 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Apr. 30, 2017 | $ 393,162 | $ 72 | $ 245,865 | $ 369,164 | $ 436 | $ (222,375) |
Balance (in shares) at Apr. 30, 2017 | 53,850,426 | 72,017,000 | ||||
Treasury stock, shares at Apr. 30, 2017 | 18,166,862 | 18,167,000 | ||||
Proceeds from exercise of employee stock options | $ 23 | 23 | ||||
Proceeds from exercise of employee stock options (in shares) | 4,000 | 4,000 | ||||
Stock-based compensation | $ 5,764 | 5,764 | ||||
Shares issued under employee stock purchase plan | 1,058 | 1,058 | ||||
Shares issued under employee stock purchase plan (in shares) | 82,000 | |||||
Change in unrealized income on interest rate swap, net of tax effect | 768 | 768 | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered | (2,271) | (2,271) | ||||
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares) | 193,000 | |||||
Net income | 12,464 | 12,464 | ||||
Balance at Jan. 31, 2018 | $ 410,968 | $ 72 | $ 250,439 | $ 381,628 | $ 1,204 | $ (222,375) |
Balance (in shares) at Jan. 31, 2018 | 54,129,371 | 72,296,000 | ||||
Treasury stock, shares at Jan. 31, 2018 | 18,166,862 | 18,167,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 12,464 | $ 100,161 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38,775 | 37,187 |
Loss on sale/disposition of assets | 36 | 98 |
Provision for losses on accounts receivable | 304 | 179 |
Deferred income taxes | (10,622) | (12,300) |
Change in contingent consideration | (1,300) | |
Stock-based compensation expense | 5,764 | 6,383 |
Changes in operating assets and liabilities (net effect of acquisitions): | ||
Accounts receivable | 34,103 | (3,754) |
Inventories | (25,914) | (18,451) |
Prepaid expenses and other current assets | (803) | (2,178) |
Income taxes | 931 | (2,095) |
Accounts payable | (20,385) | 2,393 |
Accrued payroll and incentives | (11,197) | (1,218) |
Accrued profit sharing | (12,404) | (1,594) |
Accrued expenses | (14,667) | 5,004 |
Accrued warranty | 201 | (262) |
Other assets | (403) | 1,059 |
Other non-current liabilities | 613 | (1,088) |
Net cash (used in)/provided by operating activities | (4,504) | 109,524 |
Cash flows from investing activities: | ||
Acquisition of businesses, net of cash acquired | (23,120) | (211,069) |
Refunds on machinery and equipment | 2,776 | |
Receipts from note receivable | 58 | |
Payments to acquire patents and software | (384) | (515) |
Proceeds from sale of property and equipment | 6 | |
Payments to acquire property and equipment | (13,956) | (28,952) |
Net cash used in investing activities | (37,454) | (237,702) |
Cash flows from financing activities: | ||
Proceeds from loans and notes payable | 75,000 | 50,000 |
Cash paid for debt issuance costs | (525) | |
Payments on capital lease obligation | (484) | (397) |
Payments on notes and loans payable | (54,725) | (54,725) |
Proceeds from Economic Development Incentive Program | 101 | |
Proceeds from exercise of options to acquire common stock, including employee stock purchase plan | 1,081 | 1,141 |
Payment of employee withholding tax related to restricted stock units | (2,271) | (4,443) |
Net cash provided by/(used in) financing activities | 18,601 | (8,848) |
Net decrease in cash and cash equivalents | (23,357) | (137,026) |
Cash and cash equivalents, beginning of period | 61,549 | 191,279 |
Cash and cash equivalents, end of period | 38,192 | 54,253 |
Supplemental disclosure of cash flow information Cash paid for: | ||
Interest | 8,574 | 6,683 |
Income taxes | 1,355 | 63,195 |
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Purchases of property and equipment included in accounts payable | 3,453 | $ 3,426 |
Purchases of property and equipment funded by capital lease | 11,119 | |
Capital lease obligation included in other non-current liabilities | $ 11,119 |
Organization
Organization | 9 Months Ended |
Jan. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | (1) Organization: We are a leading manufacturer, designer, and provider of consumer products for the shooting, hunting, and rugged outdoor enthusiast. We are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States and an active participant in the hunting rifle market. We are also a leading provider of shooting, hunting, and rugged outdoor products and accessories, including knives and cutting tools, sighting lasers, shooting supplies, tree saws, and survival gear. In our Firearms segment, we manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles, bolt action rifles, and muzzleloaders), handcuffs, and firearm-related products for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We sell our firearm products under the Smith & Wesson, M&P, Performance Center, Thompson/Center Arms, and Gemtech brands. We manufacture our firearm products at our facilities in Springfield, Massachusetts; Houlton, Maine; Eagle, Idaho; and Deep River, Connecticut. We also sell our manufacturing services to other businesses under our Smith & Wesson and Smith & Wesson Precision Components, formerly known as Deep River Plastics, brands. In our Outdoor Products & Accessories segment, we design, source, distribute, and manufacture reloading, gunsmithing, and gun cleaning supplies, high-quality stainless steel cutting tools and accessories, flashlights, tree saws and related trimming accessories, shooting supplies, rests, and other related accessories, apparel, vault accessories, laser grips and laser sights, and a full range of products for survival and emergency preparedness. We sell our outdoor products and accessories under the following brands: Caldwell, Wheeler, Tipton, Frankford Arsenal, Smith & Wesson, M&P, Thompson/Center, Lockdown, Hooyman, BOG-POD, Golden Rod, Non-Typical, Crimson Trace, Imperial, Schrade, Old Timer, Bubba Blade, UST, and KeyGear. We develop and market our outdoor products and accessories in and from our facilities in Columbia, Missouri; Wilsonville, Oregon; and Jacksonville, Florida. On August 1, 2016, we acquired substantially all of the net assets of Taylor Brands, LLC; on August 26, 2016, we acquired all of the issued and outstanding stock of Crimson Trace Corporation; and on November 18, 2016, we acquired substantially all of the net assets of Ultimate Survival Technologies, Inc., in three separate transactions, which we refer to collectively as the 2017 Acquisitions. On August 7, 2017, we acquired substantially all of the net assets of Gemini Technologies, Incorporated, or Gemtech, and on August 11, 2017, we acquired Bubba Blade branded products and other assets from Fish Tales, LLC, in two separate transactions, which we refer to collectively as the 2018 Acquisitions. See Note 3 – Acquisitions |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of January 31, 2018, the condensed consolidated statements of income and comprehensive income for the three and nine months ended January 31, 2018 and 2017, the condensed consolidated statement of changes in stockholders’ equity for the nine months ended January 31, 2018, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2018 and 2017 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 January 31, 2018 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2017 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, 2017. The results of operations for the three and nine months ended Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2014-09, (Topic 606), or ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning December 15, 2017, and early adoption is permitted. In March 2016, the FASB issued ASU 2016-08, , which clarifies the guidance relating to principal versus agent considerations. Additionally, in April 2016, the FASB issued ASU 2016-10, , which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, (Topic 606), which provides clarifying guidance in certain narrow areas and adds some practical expedients. We intend to adopt the new standard on May 1, 2018 utilizing one of two acceptable methods: full retrospective adoption for all periods presented or modified retrospective adoption that presents a cumulative effect as of the adoption date. We have established an internal project team and have engaged third party specialists to assist us in evaluating the impact these ASUs will have on our condensed consolidated financial statements. We have substantially completed the diagnostic review of a sample of existing baseline contracts to identify potential differences that would result from applying the requirements under the new standard. As of January 31, 2018, we are in the process of evaluating the application of the new standard and cannot at this time estimate the impact the new standard will have on our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory — Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU 2018-02, Income Statement —Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, |
Acquisitions
Acquisitions | 9 Months Ended |
Jan. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | (3) Acquisitions: 2018 Acquisitions In August 2017, in two separate transactions, we acquired (1) substantially all of the net assets of Gemtech and (2) Bubba Blade branded products and other assets from Fish Tales, LLC. The aggregate purchase price for the two acquisitions was $23.1 million, subject to certain adjustments, utilizing a combination of cash on hand and borrowings under our revolving line of credit. In connection with the Gemtech acquisition, additional consideration of up to a maximum of $17.1 million may be paid contingent upon the cumulative three year sales volume of Gemtech products. The valuation of this contingent consideration liability was established in accordance with ASC 805 — Business Combinations We are in the process of finalizing the valuations of the assets acquired and liabilities assumed in the 2018 Acquisitions. Therefore, the fair values for these acquisitions 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 2018 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 significant contractual and operational factors underlying the trade name, developed technology, and customer relationship intangible assets. The following table summarizes the estimated preliminary allocation of the purchase price for the 2018 Acquisitions (in thousands): 2018 Acquisitions Measurement (As Initially Period 2018 Acquisitions Reported) Adjustments (As Adjusted) Accounts receivable $ 846 (52 ) $ 794 Inventories 4,683 17 4,700 Other current assets 145 (51 ) 94 Property, plant, and equipment 506 13 519 Intangibles 6,400 — 6,400 Goodwill 11,846 49 11,895 Total assets acquired 24,426 (24 ) 24,402 Accounts payable 1,261 (27 ) 1,234 Accrued payroll 49 (1 ) 48 Other long term liabilities 100 (100 ) — Total liabilities assumed 1,410 (128 ) 1,282 $ 23,016 104 $ 23,120 Included in general and administrative costs were $79,000 and $755,000 of acquisition-related costs incurred during the three and nine months ended January 31, 2018, respectively, related to the 2018 Acquisitions. We amortize intangible assets in proportion to expected annual revenue generated from the intangibles that we acquire. The following are the identifiable intangible assets acquired (in thousands) in the 2018 Acquisitions and their respective weighted average lives: Weighted Average Amount Life (In years) Developed technology $ 1,700 5.9 Customer relationships 1,600 5.2 Trade names 3,100 5.6 $ 6,400 Pro forma results of operations assuming that the 2018 Acquisitions had occurred May 1, 2016 are not required because of the immaterial impact on our consolidated financial statements for all periods presented. 2017 Acquisitions In fiscal 2017, in three separate transactions, we acquired substantially all of the net assets of Taylor Brands, LLC (now referred to as BTI Tools, LLC) and Ultimate Survival Technologies, Inc. (now referred to as Ultimate Survival Technologies, LLC, or UST,) as well as all of the issued and outstanding stock of Crimson Trace Corporation for an aggregate purchase price of $211.1 million, net of cash acquired, subject to certain adjustments, utilizing cash on hand. In connection with the purchase of UST, up to an additional $2.0 million may be paid over a period of two years, contingent upon the financial performance of the acquired business. The valuation of this contingent consideration liability was established in accordance with ASC 805 — Business Combinations We have substantially completed the valuation of the assets acquired and liabilities assumed related to the 2017 Acquisitions. During the nine months ended January 31, 2018, we increased goodwill by $10.2 million, primarily as a result of changes to the valuation of customer relationship intangible assets and the impact to the value of the related deferred tax liabilities relating to the 2017 Acquisitions. As a result, we reduced amortization expense by $776,000, net of tax, during the three months ended October 31, 2017 relating to these changes. The following table summarizes the allocation of the purchase price for the 2017 Acquisitions (in thousands): 2017 Acquisitions Measurement (As Initially Period 2017 Acquisitions Reported) Adjustments (As Adjusted) Accounts receivable $ 11,635 $ (213 ) $ 11,422 Inventories 31,269 453 31,722 Income tax receivable — 68 68 Other current assets 430 (132 ) 298 Property, plant, and equipment 8,232 — 8,232 Intangibles 97,850 (14,500 ) 83,350 Goodwill 92,801 10,109 102,910 Total assets acquired 242,217 (4,215 ) 238,002 Accounts payable 6,214 18 6,232 Accrued expenses 973 158 1,131 Accrued payroll 1,500 (72 ) 1,428 Accrued income taxes 6 (6 ) — Accrued warranty 98 96 194 Deferred income taxes 20,658 (4,409 ) 16,249 Total liabilities assumed 29,449 (4,215 ) 25,234 $ 212,768 $ — $ 212,768 Included in general and administrative costs are $629,000 and $3.8 million of acquisition-related costs for the 2017 Acquisitions incurred during the three and nine months ended January 31, 2017, respectively. The 2017 Acquisitions generated revenue of $20.9 million and $63.5 million for the three and nine months ended January 31, 2018, respectively. We amortize intangible assets in proportion to expected annual 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) in the 2017 Acquisitions and their respective weighted average lives: Weighted Average Amount Life (In years) Developed technology $ 3,000 4.1 Customer relationships 62,100 5.0 Trade names 17,000 4.8 Order backlog 1,150 0.3 Non-competition agreement 100 3.4 $ 83,350 The following table reflects the unaudited pro forma results of operations assuming that the 2017 Acquisitions had occurred on May 1, 2015 (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended January 31, 2017 January 31, 2017 Net sales $ 234,948 $ 705,062 Income from operations 48,789 154,333 Net income per share - diluted 0.57 1.82 The unaudited pro forma income from operations for the three and nine months ended January 31, 2017 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 recorded as if the 2017 Acquisitions had occurred on May 1, 2015. The unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of the actual results that would have been achieved had the 2017 Acquisitions occurred as of May 1, 2015 or the results that may be achieved in future periods. |
Goodwill
Goodwill | 9 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | ( 4) Goodwill: The changes in the carrying amount of goodwill for the three and nine months ended January 31, 2018 by reporting segment are as follows: Firearms Outdoor Products & Total Segment Accessories Segment Goodwill Balance as of April 30, 2017 $ 13,770 $ 155,247 $ 169,017 Adjustments — 83 83 Balance as of July 31, 2017 13,770 155,330 169,100 Adjustments — 10,152 10,152 Acquisitions 4,619 7,227 11,846 Balance as of October 31, 2017 18,389 172,709 191,098 Adjustments (25 ) 89 64 Balance as of January 31, 2018 $ 18,364 $ 172,798 $ 191,162 Refer to Note 12 — Segment Information |
Notes and Loans Payable
Notes and Loans Payable | 9 Months Ended |
Jan. 31, 2018 | |
Debt Disclosure [Abstract] | |
Notes and Loans Payable | (5) Notes and Loans Payable: Credit Facilities – On June 15, 2015, we and certain of our domestic subsidiaries entered into an unsecured credit facility, or the Credit Agreement, with TD Bank, N.A. and other lenders, or the Lenders, which included a $175.0 million revolving line of credit, or the Revolving Line, and a $105.0 million term loan, or the Term Loan, of which $89.3 million was outstanding as of January 31, 2018. 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. We incurred $1.0 million of debt issuance costs related to the Credit Agreement, which are included in notes and loans payable in the accompanying condensed consolidated balance sheet. On October 27, 2016, we entered into a second amendment to the Credit Agreement, or the Second Amendment, with the Lenders. Among other things, the Second Amendment increased the Revolving Line to $350.0 million, increased the option to expand the credit commitment to an additional $150.0 million, and extended 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 and loans payable in the condensed consolidated balance sheet. As of January 31, 2018, we had $75.0 million of borrowings outstanding on the Revolving Line, which bore interest at 3.56%, equal to the LIBOR 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 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 January 31, 2018, our interest rate on the Term Loan was 3.56%. As of January 31, 2018, the interest rate swap was considered effective and had no effect on earnings. The fair value of the interest rate swap on January 31, 2018 was an asset of $1.7 million and was included in other assets 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. On February 28, 2018, we entered into a fourth amendment to our Credit Agreement with the Lenders, which permitted us to issue an aggregate of $75.0 million of 5.000% Senior Notes due 2020, as described more fully below. 5.000% Senior Notes Due 2018 – 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, 2017, 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 100% of the principal amount of the 5.000% Senior Notes to be redeemed plus accrued and unpaid interest 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. On February 6, 2018, we issued a conditional notice of redemption to holders of our outstanding 5.000% Senior Notes that we intend to redeem all of our outstanding 5.000% Senior Notes on March 8, 2018, or the Redemption Date. The redemption price for the 5.000% Senior Notes will be 100% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest to, but not including, the Redemption Date. The notice of redemption is conditioned upon the closing of a new $75.0 million notes offering prior to the Redemption Date. We reserved the right to waive the condition in our sole discretion. 5.000% Senior Notes Due 2020 – On February 28, 2018, we issued an aggregate of $75.0 million of 5.000% Senior Notes due 2020, or the New 5.000% Senior Notes, to various institutional investors pursuant to the terms and conditions of an indenture, or the New 5.000% Senior Notes Indenture, and purchase agreements. The New 5.000% Senior Notes bear interest at a rate of 5.000% per annum payable on February 28 and August 28 of each year, beginning on August 28, 2018. We do not expect debt issuance costs related to the issuance of the New 5.000% Senior Notes to be material to our condensed consolidated financial statements. We intend to use the proceeds of the New 5.000% Senior Notes offering to redeem the 5.000% Senior Notes on March 8, 2018. At any time prior to February 28, 2019, we may, at our option, upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the New 5.000% Senior Notes at a redemption price of 102.500% of the principal amount of the New 5.000% Senior Notes to be redeemed plus accrued and unpaid interest as of the applicable redemption date. On or after February 28, 2019, we may, at our option, upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the New 5.000% Senior Notes at a redemption price of 100.000% of the principal amount of the New 5.000% Senior Notes to be redeemed plus accrued and unpaid interest as of the applicable redemption date. Subject to certain restrictions and conditions, we may be required to make an offer to repurchase the New 5.000% Senior Notes from the holders of the New 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 New 5.000% Senior Notes mature on August 28, 2020. The New 5.000% Senior Notes are general, unsecured obligations of our company. The New 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 New 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 New 5.000% Senior Notes Indenture, or the New 5.000% Senior Notes Lifetime Aggregate Limit. In addition, the New 5.000% Senior Notes Indenture provides for other exceptions to the restricted payments covenant, each of which are independent of the New 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 New 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 and the New 5.000% Senior Notes Indenture contain a financial covenant relating to times interest earned. Letters of Credit – At January 31, 2018, we had outstanding letters of credit under our credit facility aggregating $1.0 million. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Jan. 31, 2018 | |
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 and cash equivalents, which are measured at fair value on a recurring basis, totaled $38.2 million and $61.5 million as of January 31, 2018 and April 30, 2017, 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 approximated the fair value as of January 31, 2018, in considering Level 2 inputs within the hierarchy. The fair value of our 5.000% Senior Notes as of January 31, 2018 approximated the carrying value in considering Level 2 inputs within the hierarchy as the 5.000% Senior Notes are not frequently traded. We anticipate the New 5.000% Senior Notes will approximate the carrying value in considering Level 2 inputs within the hierarchy as they will not be 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 — Notes and Loans Payable 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. The acquisition-related contingent consideration liability represents the estimated fair value of additional future earn-outs payable for acquisitions of businesses that included earn-out clauses. The valuation of the contingent consideration will be evaluated on an ongoing basis and is based on management estimates and entity-specific assumptions which are considered Level 3 inputs. In connection with the purchase of UST, up to an additional $2.0 million may be paid over a period of two years, contingent upon the financial performance of the acquired business. The valuation of this contingent consideration liability was established in accordance with ASC 805 — Business Combinations In connection with the Gemtech acquisition, up to a maximum of $17.1 million may be paid contingent upon the cumulative three year sales volume of the acquired business. The valuation of this contingent consideration liability was established in accordance with ASC 805 — Business Combinations . |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (7) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of January 31, 2018 and April 30, 2017 (in thousands): January 31, 2018 April 30, 2017 Finished goods (a) $ 98,189 $ 61,080 Finished parts 44,036 51,177 Work in process 6,835 9,379 Raw material 13,236 10,046 Total inventories $ 162,296 $ 131,682 (a) The increase in finished goods inventory was primarily related to our Firearms segment. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | (8) Intangible Assets: The following table presents a summary of intangible assets as of January 31, 2018 and April 30, 2017 (in thousands): January 31, 2018 April 30, 2017 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,360 $ (24,898 ) $ 67,462 $ 105,260 $ (16,463 ) $ 88,797 Developed technology 21,130 (7,416 ) 13,714 19,430 (5,436 ) 13,994 Patents, trademarks, and trade names 56,723 (20,618 ) 36,105 53,308 (15,619 ) 37,689 Backlog 1,150 (1,150 ) — 1,150 (1,150 ) — 171,363 (54,082 ) 117,281 179,148 (38,668 ) 140,480 Patents in progress 682 — 682 611 — 611 Total definite-lived intangible assets 172,045 (54,082 ) 117,963 179,759 (38,668 ) 141,091 Indefinite-lived intangible assets 226 — 226 226 — 226 Total intangible assets $ 172,271 $ (54,082 ) $ 118,189 $ 179,985 $ (38,668 ) $ 141,317 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 $5.4 million and $5.9 million for the three months ended January 31, 2018 and 2017, respectively. Amortization expense, excluding amortization of deferred financing costs, amounted to $15.4 million and $14.2 million for the nine months ended January 31, 2018 and 2017, respectively. Estimated amortization expense of intangible assets for the remainder of fiscal 2018 and succeeding fiscal years is as follows: Fiscal Amount 2018 $ 5,597 2019 21,971 2020 19,096 2021 16,488 2022 14,109 Thereafter 40,020 Total $ 117,281 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, 2017. Other than the reduction in the fair value of the contingent consideration liability discussed above, 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 nine months ended January 31, 2018, and therefore intangible assets were not tested for impairment. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jan. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | (9) Stockholders’ Equity: Treasury Stock During fiscal 2017, 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 March 28, 2019. This share repurchase authorization is similar to the $50.0 million authorization from June 2015 under which we repurchased 2.6 million shares of common stock for $50.0 million in fiscal 2017. As of January 31, 2018, there were 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 nine months ended January 31, 2018 and 2017 (in thousands, except per share data): For the Three Months Ended January 31, 2018 2017 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 11,395 54,122 $ 0.21 $ 32,453 56,342 $ 0.58 Effect of dilutive stock awards — 535 — — 785 (0.01 ) Diluted earnings $ 11,395 54,657 $ 0.21 $ 32,453 57,127 $ 0.57 For the Nine Months Ended January 31, 2018 2017 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 12,464 54,024 $ 0.23 $ 100,161 56,208 $ 1.78 Effect of dilutive stock awards — 806 — — 958 (0.03 ) Diluted earnings $ 12,464 54,830 $ 0.23 $ 100,161 57,166 $ 1.75 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 nine months ended January 31, 2018 and 2017. For the three and nine months ended January 31, 2018, there were 17,362 and 10,171 shares, respectively, of common stock issuable upon the exercise of stock options and under our 2011 Employee Stock Purchase Plan, or ESPP, that were excluded from the computation of diluted earnings per share because the effect would be antidilutive. Incentive Stock and Employee Stock Purchase Plans We have two incentive 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 stock options are exercisable for a period of 10 years from the date of grant. 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 stock options for the nine months ended January 31, 2018 and 2017 were as follows: For the Nine Months Ended January 31, 2018 2017 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 335,160 $ 6.58 389,360 $ 6.16 Exercised during the period (4,000 ) 5.69 (54,200 ) 3.57 Options outstanding, end of period 331,160 $ 6.59 335,160 $ 6.58 Weighted average remaining contractual life 3.28 years 4.26 years Options exercisable, end of period 331,160 $ 6.59 335,160 $ 6.58 Weighted average remaining contractual life 3.28 years 4.26 years The aggregate intrinsic value of outstanding and exercisable stock options as of January 31, 2018 and 2017 was $1.8 million and $4.9 million, respectively. The aggregate intrinsic value of the stock options exercised for the nine months ended January 31, 2018 and 2017 was $28,600 and $1.3 million, respectively. At January 31, 2018, there were no unrecognized compensation costs of outstanding stock options. On September 26, 2011, our stockholders approved our ESPP. Under the ESPP, each participant is granted an option to purchase our common stock on each subsequent exercise date during the offering period (as such terms are defined in the ESPP) in accordance with the terms of the ESPP. The option to purchase shares is exercised automatically unless the participant withdraws from the plan in accordance with the terms of the ESPP or the participant’s employment is terminated. Neither plan contributions credited to a participant’s account nor any rights to exercise any option or receive shares of common stock may be assigned, transferred, pledged, or otherwise disposed of other than by will or the laws of descent and distribution. 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 nine months ended January 31, 2018 and 2017, 81,643 and 66,812 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 $5.8 million and $6.4 million for the nine months ended January 31, 2018 and 2017, respectively. Stock-based compensation expense is included in cost of sales, sales and marketing, research and development, and general and administrative expenses. We grant service-based RSUs to employees, consultants, and directors. The awards are made at no cost to the recipient. An RSU represents the right to acquire one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees generally vest over a period of three or four years with one-third or one-fourth of the units vesting, respectively, on each anniversary of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period. We grant PSUs to our executive officers and certain employees who are not executive officers. At the time of grant, we calculate the fair value of our 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 PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. Our PSUs have a maximum aggregate award potential equal to 200% of the target amount granted. Generally, the number of 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 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 our PSUs, which is 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 nine months ended January 31, 2018, we granted an aggregate of 232,672 service-based RSUs, including 189,360 to non-executive officer employees and 43,312 to our directors. In addition, in connection with a 2014 grant of 105,500 PSUs (i.e., the target amount granted), which achieved 115.2% of the targeted award, we vested and delivered awards totaling 121,504 shares to certain of our executive officers. Compensation expense recognized related to grants of RSUs and PSUs was $5.2 million for the nine months ended January 31, 2018. During the nine months ended January 31, 2018, we cancelled 230,441 service-based RSUs as a result of the service condition not being met. We delivered common stock to our employees, including our executive officers, during the nine months ended January 31, 2018 under vested RSUs and PSUs with a total market value of $6.2 million. During the nine months ended January 31, 2017, we granted an aggregate of 255,109 service-based RSUs, including 200,213 RSUs to non-executive officer employees; 24,896 RSUs to our directors; and 30,000 RSU’s to a newly hired executive officer. In addition, in connection with a 2013 grant of 118,500 PSUs (i.e. the target amount granted), which achieved 200.0% of the targeted award, or the maximum award possible, we vested and delivered awards totaling 237,000 shares to certain of our executive officers. Compensation expense recognized related to grants of RSUs and PSUs was $5.8 million for the nine months ended January 31, 2017. During the nine months ended January 31, 2017, we cancelled 18,714 service-based RSUs as a result of the service condition not being met. We delivered common stock to our employees, including our executive officers, during the nine months ended January 31, 2017 under vested RSUs and PSUs with a total market value of $11.0 million. A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2018 and 2017 is as follows: For the Nine Months Ended January 31, 2018 2017 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 1,428,848 $ 18.46 1,215,753 $ 15.38 Awarded 248,676 20.48 373,609 18.26 Vested (298,727 ) 16.51 (402,335 ) 11.35 Forfeited (230,441 ) 16.65 (18,714 ) 17.21 RSUs and PSUs outstanding, end of period 1,148,356 $ 19.77 1,168,313 $ 17.66 As of January 31, 2018, there was $8.7 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 1.4 years. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes: Income tax provisions for interim periods are based on estimated effective annual income tax rates and include federal and state income taxes. On December 22, 2017, the U.S. federal government enacted comprehensive tax legislation with the Tax Cuts and Jobs Act, or Tax Reform, which makes broad and complex changes to the U.S. tax code. Tax Reform significantly revises the corporate federal income tax by, among other things, lowering the corporate federal income tax rate, limiting various deductions, and repealing the domestic manufacturing deduction. We expect to see net benefits from the lower federal tax rate, although there are offsetting effects from other components of Tax Reform. Tax Reform reduced the U.S. federal statutory income tax rate from 35% to 21% generally effective for tax years beginning on or after January 1, 2018. However, companies with fiscal years that include January 1, 2018 must use a blended rate. Because of our fiscal year, we expect our fiscal 2018 U.S. federal statutory tax rate to be approximately 29.9%. Our U.S. federal statutory tax rate will be 21.0% starting in fiscal 2019. On December 22, 2017, the SEC issued Staff Accounting Bulletin 118, or SAB118, that provides additional guidance allowing companies to use a measurement period, similar to that used in business combinations, to account for the impacts of Tax Reform in their financial statements. In accordance with SAB 118, to the extent that a company’s accounting for certain income tax effects of the Tax Reform is incomplete, but the company is able to determine a reasonable estimate, it must record a provisional estimate in its financial statements. We have accounted for the impacts of Tax Reform to the extent a reasonable estimate could be made during the three and nine months ended January 31, 2018. We will continue to refine our estimates throughout the measurement period or until the accounting is complete. We estimate the impact of Tax Reform, based on currently available information and interpretations of the law, to be a benefit to us of $9.4 million, which has been included in our current period tax benefit. The majority of the tax benefit is due to remeasurement of deferred tax assets and liabilities at lower enacted corporate federal tax rates, which did not have a cash impact on the current quarter. The actual impact of Tax Reform may differ from this estimate, possibly materially, because of, among other things, changes in interpretations and assumptions we have made, guidance that may be issued, and actions we may take as a result of Tax Reform. The income tax provisions represent effective tax rates of (288.9%) and 32.8% for the three months ended January 31, 2018 and 2017, respectively, and (240.5%) and 32.8% for the nine months ended January 31, 2018 and 2017, respectively. The tax benefit in fiscal 2018 was primarily caused by the effect of Tax Reform which resulted in the remeasurement of deferred tax assets and liabilities. Excluding the impact of Tax Reform and other discrete items, our effective tax rate for the three and nine months ended January 31, 2018 was 42.9% and 41.5%, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (11) Commitments and Contingencies: Litigation In January 2018, Gemini Technologies, Incorporated commenced an action against us and Smith & Wesson Corp. in the United States District Court for the District of Idaho. The complaint alleges, among other things, that the defendants breached the earn-out and other provisions of the Asset Purchase Agreement and ancillary agreements between the parties in connection with Smith & Wesson Corp.’s acquisition of the Gemtech business from Gemini Technologies, Incorporated. The complaint seeks a declaratory judgment interpreting various terms of the Asset Purchase Agreement and damages in the sum of $18.6 million. We believe the claims asserted in the complaint have no merit and we intend to aggressively defend this action. We are also a defendant in five product liability cases and are aware of six other product liability claims, which primarily allege defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we were 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. On January 2, 2018, the court granted defendants’ motion for judgment on the pleadings and dismissed the case in its entirety. On February 1, 2018, plaintiff filed a Notice of Appeal with the Indiana Court of Appeals. 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, from time to time, 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 $900,000. 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. Rental Leases On October 26, 2017, our wholly owned subsidiary, Smith & Wesson Corp., or Smith & Wesson, entered into a lease agreement, or the Lease, with Ryan Boone County, LLC, an affiliate of Ryan Companies US, Inc., for the design, construction, and lease of an approximately 632,000 square foot national distribution center in the Columbia area of Boone County, Missouri. The initial term of the lease is 20 years commencing on the rent commencement date, which is expected to begin in the second half of fiscal 2019. The Lease contains six, five-year options to extend the lease term. The base rent is calculated as a percentage multiplied by the project costs. The annual lease expense, including base rent, is estimated to be between $3.3 million and $3.5 million. We expect to receive various tax and other incentives from federal, state, and local governmental authorities. Under the Lease, we have a one-time right to purchase the distribution center and, under certain circumstances, may share with the landlord any gain on the sale of the property to a third party. We have guaranteed the Lease and expect it will be classified as a capital lease. |
Segment Information
Segment Information | 9 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (12) Segment Information: We report our results of operations in two segments: (1) Firearms and (2) Outdoor Products & Accessories & Accessories segment represents two operating segments that have been aggregated into a single reportable segment, which are evaluated b The Firearms segment includes our firearms and other components, which we manufacture at our facilities in Springfield, Massachusetts; Houlton, Maine; Eagle, Idaho; 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 a reportable segment’s operations. Assets by business segment are presented in the following table as of January 31, 2018 and April 30, 2017 (in thousands As of January 31, 2018 As of April 30, 2017 Firearms Outdoor Products Total Firearms Outdoor Products & Accessories Total Total assets $ 362,975 $ 402,446 $ 765,421 $ 393,341 $ 394,695 $ 788,036 Property, plant, and equipment, net 140,586 12,994 153,580 135,985 13,700 149,685 Intangibles, net 5,002 113,187 118,189 2,792 138,525 141,317 Goodwill 18,364 172,798 191,162 13,770 155,247 169,017 Results by business segment are presented in the following tables for the three months ended January 31, 2018 and 2017 (in thousands): For the Three Months Ended January 31, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 116,882 $ 40,494 $ — $ — $ 157,376 Intersegment revenue 762 4,230 — (4,992 ) — Total net sales 117,644 44,724 — (4,992 ) 157,376 Cost of sales 91,301 23,649 — (4,491 ) 110,459 Gross margin 26,343 21,075 — (501 ) 46,917 Operating income/(loss) 7,604 1,058 (b) (10,517 ) 7,697 5,842 Income tax expense/(benefit) (h) 14,519 (7,421 ) (15,563 ) — (8,465 ) For the Three Months Ended January 31, 2017 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 197,025 $ 36,498 $ — $ — $ 233,523 Intersegment revenue 1,090 2,947 — (4,037 ) — Total net sales 198,115 39,445 — (4,037 ) 233,523 Cost of sales 118,207 20,322 (d) — (4,317 ) 134,212 Gross margin 79,908 19,123 — 280 99,311 Operating income/(loss) 50,097 (1,483 ) (e) (13,131 ) 14,726 50,209 Income tax expense/(benefit) 19,453 (779 ) (2,865 ) — 15,809 Results by business segment are presented in the following tables for the nine months ended January 31, 2018 and 2017 (in thousands): For the Nine Months Ended January 31, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 315,545 $ 119,280 $ — $ — $ 434,825 Intersegment revenue 2,955 8,771 — (11,726 ) — Total net sales 318,500 128,051 — (11,726 ) 434,825 Cost of sales 236,224 70,463 — (10,210 ) 296,477 Gross margin 82,276 57,588 (c) — (1,516 ) 138,348 Operating income/(loss) 10,536 (1,251 ) (33,030 ) 34,377 10,632 Income tax expense/(benefit) (h) 20,581 (7,988 ) (21,396 ) — (8,803 ) For the Nine Months Ended January 31, 2017 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 583,900 $ 90,102 $ — $ — $ 674,002 Intersegment revenue 2,816 6,310 — (9,126 ) — Total net sales 586,716 96,412 — (9,126 ) 674,002 Cost of sales 344,558 53,359 (f) — (8,400 ) 389,517 Gross margin 242,158 43,053 — (726 ) 284,485 Operating income/(loss) 156,771 (4,749 ) (g) (35,912 ) 38,778 154,888 Income tax expense/(benefit) 60,216 (1,858 ) (9,796 ) — 48,562 (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) Amount includes $3.0 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. (c) Amount includes $8.1 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. (d) Amount includes $777,000 of additional cost of goods sold from the fair value step-up in inventory and backlog expense related to the 2017 Acquisitions. ( e) Amount includes $3.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. (f) Amount includes $4.6 million of additional cost of goods sold from the fair value inventory step-up and backlog expense related to the 2017 Acquisitions. (g) Amount includes $5.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. (h) Amounts include an income tax benefit of approximately $9.4 million, primarily caused by the effect of Tax Reform, which resulted in the remeasurement of deferred tax assets and liabilities at lower enacted corporate federal tax rates. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Jan. 31, 2018 | |
Accounting Policies [Abstract] | |
Interim Financial Information | Interim Financial Information – The condensed consolidated balance sheet as of January 31, 2018, the condensed consolidated statements of income and comprehensive income for the three and nine months ended January 31, 2018 and 2017, the condensed consolidated statement of changes in stockholders’ equity for the nine months ended January 31, 2018, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2018 and 2017 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 January 31, 2018 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2017 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, 2017. The results of operations for the three and nine months ended |
Recently Issued Accounting Standards | Recently Issued Accounting Standards – In May 2014, the Financial Accounting Standards Board, or FASB, issued Acco unting Standards Update, or ASU, 2014-09, (Topic 606), or ASU 2014-09. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for interim reporting periods beginning December 15, 2017, and early adoption is permitted. In March 2016, the FASB issued ASU 2016-08, , which clarifies the guidance relating to principal versus agent considerations. Additionally, in April 2016, the FASB issued ASU 2016-10, , which clarifies the identification of performance obligations and licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, (Topic 606), which provides clarifying guidance in certain narrow areas and adds some practical expedients. We intend to adopt the new standard on May 1, 2018 utilizing one of two acceptable methods: full retrospective adoption for all periods presented or modified retrospective adoption that presents a cumulative effect as of the adoption date. We have established an internal project team and have engaged third party specialists to assist us in evaluating the impact these ASUs will have on our condensed consolidated financial statements. We have substantially completed the diagnostic review of a sample of existing baseline contracts to identify potential differences that would result from applying the requirements under the new standard. As of January 31, 2018, we are in the process of evaluating the application of the new standard and cannot at this time estimate the impact the new standard will have on our condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, Inventory — Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), In February 2018, the FASB issued ASU 2018-02, Income Statement —Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated preliminary allocation of the purchase price for the 2018 Acquisitions (in thousands): 2018 Acquisitions Measurement (As Initially Period 2018 Acquisitions Reported) Adjustments (As Adjusted) Accounts receivable $ 846 (52 ) $ 794 Inventories 4,683 17 4,700 Other current assets 145 (51 ) 94 Property, plant, and equipment 506 13 519 Intangibles 6,400 — 6,400 Goodwill 11,846 49 11,895 Total assets acquired 24,426 (24 ) 24,402 Accounts payable 1,261 (27 ) 1,234 Accrued payroll 49 (1 ) 48 Other long term liabilities 100 (100 ) — Total liabilities assumed 1,410 (128 ) 1,282 $ 23,016 104 $ 23,120 |
Identifiable Intangible Assets Acquired and Respective Weighted Average Lives | The following are the identifiable intangible assets acquired (in thousands) in the 2018 Acquisitions and their respective weighted average lives: Weighted Average Amount Life (In years) Developed technology $ 1,700 5.9 Customer relationships 1,600 5.2 Trade names 3,100 5.6 $ 6,400 |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price for the 2017 Acquisitions (in thousands): 2017 Acquisitions Measurement (As Initially Period 2017 Acquisitions Reported) Adjustments (As Adjusted) Accounts receivable $ 11,635 $ (213 ) $ 11,422 Inventories 31,269 453 31,722 Income tax receivable — 68 68 Other current assets 430 (132 ) 298 Property, plant, and equipment 8,232 — 8,232 Intangibles 97,850 (14,500 ) 83,350 Goodwill 92,801 10,109 102,910 Total assets acquired 242,217 (4,215 ) 238,002 Accounts payable 6,214 18 6,232 Accrued expenses 973 158 1,131 Accrued payroll 1,500 (72 ) 1,428 Accrued income taxes 6 (6 ) — Accrued warranty 98 96 194 Deferred income taxes 20,658 (4,409 ) 16,249 Total liabilities assumed 29,449 (4,215 ) 25,234 $ 212,768 $ — $ 212,768 |
Identifiable Intangible Assets Acquired and Respective Weighted Average Lives | The following are the identifiable intangible assets acquired (in thousands) in the 2017 Acquisitions and their respective weighted average lives: Weighted Average Amount Life (In years) Developed technology $ 3,000 4.1 Customer relationships 62,100 5.0 Trade names 17,000 4.8 Order backlog 1,150 0.3 Non-competition agreement 100 3.4 $ 83,350 |
Unaudited Pro Forma Results of Operations | The following table reflects the unaudited pro forma results of operations assuming that the 2017 Acquisitions had occurred on May 1, 2015 (in thousands, except per share data): For the Three For the Nine Months Ended Months Ended January 31, 2017 January 31, 2017 Net sales $ 234,948 $ 705,062 Income from operations 48,789 154,333 Net income per share - diluted 0.57 1.82 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the three and nine months ended January 31, 2018 by reporting segment are as follows: Firearms Outdoor Products & Total Segment Accessories Segment Goodwill Balance as of April 30, 2017 $ 13,770 $ 155,247 $ 169,017 Adjustments — 83 83 Balance as of July 31, 2017 13,770 155,330 169,100 Adjustments — 10,152 10,152 Acquisitions 4,619 7,227 11,846 Balance as of October 31, 2017 18,389 172,709 191,098 Adjustments (25 ) 89 64 Balance as of January 31, 2018 $ 18,364 $ 172,798 $ 191,162 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of January 31, 2018 and April 30, 2017 (in thousands): January 31, 2018 April 30, 2017 Finished goods (a) $ 98,189 $ 61,080 Finished parts 44,036 51,177 Work in process 6,835 9,379 Raw material 13,236 10,046 Total inventories $ 162,296 $ 131,682 (a) The increase in finished goods inventory was primarily related to our Firearms segment. |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The following table presents a summary of intangible assets as of January 31, 2018 and April 30, 2017 (in thousands): January 31, 2018 April 30, 2017 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Amount Amortization Amount Amount Amortization Amount Customer relationships $ 92,360 $ (24,898 ) $ 67,462 $ 105,260 $ (16,463 ) $ 88,797 Developed technology 21,130 (7,416 ) 13,714 19,430 (5,436 ) 13,994 Patents, trademarks, and trade names 56,723 (20,618 ) 36,105 53,308 (15,619 ) 37,689 Backlog 1,150 (1,150 ) — 1,150 (1,150 ) — 171,363 (54,082 ) 117,281 179,148 (38,668 ) 140,480 Patents in progress 682 — 682 611 — 611 Total definite-lived intangible assets 172,045 (54,082 ) 117,963 179,759 (38,668 ) 141,091 Indefinite-lived intangible assets 226 — 226 226 — 226 Total intangible assets $ 172,271 $ (54,082 ) $ 118,189 $ 179,985 $ (38,668 ) $ 141,317 |
Schedule of Future Expected Amortization Expense | Estimated amortization expense of intangible assets for the remainder of fiscal 2018 and succeeding fiscal years is as follows: Fiscal Amount 2018 $ 5,597 2019 21,971 2020 19,096 2021 16,488 2022 14,109 Thereafter 40,020 Total $ 117,281 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
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 nine months ended January 31, 2018 and 2017 (in thousands, except per share data): For the Three Months Ended January 31, 2018 2017 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 11,395 54,122 $ 0.21 $ 32,453 56,342 $ 0.58 Effect of dilutive stock awards — 535 — — 785 (0.01 ) Diluted earnings $ 11,395 54,657 $ 0.21 $ 32,453 57,127 $ 0.57 For the Nine Months Ended January 31, 2018 2017 Net Per Share Net Per Share Income Shares Amount Income Shares Amount Basic earnings $ 12,464 54,024 $ 0.23 $ 100,161 56,208 $ 1.78 Effect of dilutive stock awards — 806 — — 958 (0.03 ) Diluted earnings $ 12,464 54,830 $ 0.23 $ 100,161 57,166 $ 1.75 |
Share Based Compensation Stock Options Activity | The number of shares and weighted average exercise prices of stock options for the nine months ended January 31, 2018 and 2017 were as follows: For the Nine Months Ended January 31, 2018 2017 Weighted Weighted Average Average Shares Exercise Price Shares Exercise Price Options outstanding, beginning of year 335,160 $ 6.58 389,360 $ 6.16 Exercised during the period (4,000 ) 5.69 (54,200 ) 3.57 Options outstanding, end of period 331,160 $ 6.59 335,160 $ 6.58 Weighted average remaining contractual life 3.28 years 4.26 years Options exercisable, end of period 331,160 $ 6.59 335,160 $ 6.58 Weighted average remaining contractual life 3.28 years 4.26 years |
Summary of Activity in Unvested RSUs and PSUs | A summary of activity in unvested RSUs and PSUs for the nine months ended January 31, 2018 and 2017 is as follows: For the Nine Months Ended January 31, 2018 2017 Weighted Weighted Total # of Average Total # of Average Restricted Grant Date Restricted Grant Date Stock Units Fair Value Stock Units Fair Value RSUs and PSUs outstanding, beginning of period 1,428,848 $ 18.46 1,215,753 $ 15.38 Awarded 248,676 20.48 373,609 18.26 Vested (298,727 ) 16.51 (402,335 ) 11.35 Forfeited (230,441 ) 16.65 (18,714 ) 17.21 RSUs and PSUs outstanding, end of period 1,148,356 $ 19.77 1,168,313 $ 17.66 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jan. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Assets by Business Segment | Assets by business segment are presented in the following table as of January 31, 2018 and April 30, 2017 (in thousands As of January 31, 2018 As of April 30, 2017 Firearms Outdoor Products Total Firearms Outdoor Products & Accessories Total Total assets $ 362,975 $ 402,446 $ 765,421 $ 393,341 $ 394,695 $ 788,036 Property, plant, and equipment, net 140,586 12,994 153,580 135,985 13,700 149,685 Intangibles, net 5,002 113,187 118,189 2,792 138,525 141,317 Goodwill 18,364 172,798 191,162 13,770 155,247 169,017 |
Schedule of Results by Business Segment | Results by business segment are presented in the following tables for the three months ended January 31, 2018 and 2017 (in thousands): For the Three Months Ended January 31, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 116,882 $ 40,494 $ — $ — $ 157,376 Intersegment revenue 762 4,230 — (4,992 ) — Total net sales 117,644 44,724 — (4,992 ) 157,376 Cost of sales 91,301 23,649 — (4,491 ) 110,459 Gross margin 26,343 21,075 — (501 ) 46,917 Operating income/(loss) 7,604 1,058 (b) (10,517 ) 7,697 5,842 Income tax expense/(benefit) (h) 14,519 (7,421 ) (15,563 ) — (8,465 ) For the Three Months Ended January 31, 2017 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 197,025 $ 36,498 $ — $ — $ 233,523 Intersegment revenue 1,090 2,947 — (4,037 ) — Total net sales 198,115 39,445 — (4,037 ) 233,523 Cost of sales 118,207 20,322 (d) — (4,317 ) 134,212 Gross margin 79,908 19,123 — 280 99,311 Operating income/(loss) 50,097 (1,483 ) (e) (13,131 ) 14,726 50,209 Income tax expense/(benefit) 19,453 (779 ) (2,865 ) — 15,809 Results by business segment are presented in the following tables for the nine months ended January 31, 2018 and 2017 (in thousands): For the Nine Months Ended January 31, 2018 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 315,545 $ 119,280 $ — $ — $ 434,825 Intersegment revenue 2,955 8,771 — (11,726 ) — Total net sales 318,500 128,051 — (11,726 ) 434,825 Cost of sales 236,224 70,463 — (10,210 ) 296,477 Gross margin 82,276 57,588 (c) — (1,516 ) 138,348 Operating income/(loss) 10,536 (1,251 ) (33,030 ) 34,377 10,632 Income tax expense/(benefit) (h) 20,581 (7,988 ) (21,396 ) — (8,803 ) For the Nine Months Ended January 31, 2017 (a) Firearms Outdoor Products & Accessories Corporate Intersegment Eliminations Total Revenue from external customers $ 583,900 $ 90,102 $ — $ — $ 674,002 Intersegment revenue 2,816 6,310 — (9,126 ) — Total net sales 586,716 96,412 — (9,126 ) 674,002 Cost of sales 344,558 53,359 (f) — (8,400 ) 389,517 Gross margin 242,158 43,053 — (726 ) 284,485 Operating income/(loss) 156,771 (4,749 ) (g) (35,912 ) 38,778 154,888 Income tax expense/(benefit) 60,216 (1,858 ) (9,796 ) — 48,562 (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) Amount includes $3.0 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. (c) Amount includes $8.1 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. (d) Amount includes $777,000 of additional cost of goods sold from the fair value step-up in inventory and backlog expense related to the 2017 Acquisitions. ( e) Amount includes $3.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. (f) Amount includes $4.6 million of additional cost of goods sold from the fair value inventory step-up and backlog expense related to the 2017 Acquisitions. (g) Amount includes $5.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. (h) Amounts include an income tax benefit of approximately $9.4 million, primarily caused by the effect of Tax Reform, which resulted in the remeasurement of deferred tax assets and liabilities at lower enacted corporate federal tax rates. |
Organization - Additional Infor
Organization - Additional Information (Detail) - Transaction | 1 Months Ended | 9 Months Ended |
Aug. 31, 2017 | Jan. 31, 2018 | |
Taylor Brands, LLC | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition agreement date | Aug. 1, 2016 | |
Crimson Trace Corporation | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition agreement date | Aug. 26, 2016 | |
Ultimate Survival Technologies, Inc. | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition agreement date | Nov. 18, 2016 | |
Gemini Technologies, Incorporated | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition agreement date | Aug. 7, 2017 | |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of transactions for acquisition | 2 | |
Bubba Blade Branded Products From Fish Tales LLC | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition agreement date | Aug. 11, 2017 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Aug. 31, 2017USD ($)Transaction | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jan. 31, 2017USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2017USD ($) | Apr. 30, 2017USD ($) | ||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business, net of cash acquired | $ 23,120,000 | $ 211,069,000 | ||||||
Reduction in fair value of contingent consideration liability | 1,300,000 | |||||||
Net sales | [1] | $ 157,376,000 | $ 233,523,000 | 434,825,000 | 674,002,000 | |||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of transactions for acquisition | Transaction | 2 | |||||||
Payments to acquire business, net of cash acquired | $ 23,100,000 | |||||||
Business combination, acquisition-related costs | 79,000 | 755,000 | ||||||
Gemini Technologies, Incorporated | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, contingent consideration payable performance period | 3 years | |||||||
Business combination contingent consideration liability non-current | 100,000 | 100,000 | ||||||
Gemini Technologies, Incorporated | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration payable upon financial performance of acquired business | $ 17,100,000 | |||||||
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire business, net of cash acquired | $ 211,100,000 | |||||||
Business combination, acquisition-related costs | $ 629,000 | $ 3,800,000 | ||||||
Business combination increase in goodwill | 10,200,000 | |||||||
Business combination reduction in amortization expense, net of tax | $ 776,000 | |||||||
Net sales | 20,900,000 | 63,500,000 | ||||||
Ultimate Survival Technologies, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration payable upon financial performance of acquired business | $ 1,700,000 | |||||||
Business combination, contingent consideration payable performance period | 2 years | |||||||
Business combination contingent consideration liability non-current | $ 400,000 | 400,000 | ||||||
Reduction in fair value of contingent consideration liability | $ 1,300,000 | |||||||
Ultimate Survival Technologies, Inc. | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration payable upon financial performance of acquired business | $ 2,000,000 | |||||||
[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. |
Acquisitions - Estimated Fair V
Acquisitions - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 191,162 | $ 191,098 | $ 169,100 | $ 169,017 |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 794 | |||
Inventories | 4,700 | |||
Other current assets | 94 | |||
Property, plant, and equipment | 519 | |||
Intangibles | 6,400 | |||
Goodwill | 11,895 | |||
Total assets acquired | 24,402 | |||
Accounts payable | 1,234 | |||
Accrued payroll | 48 | |||
Total liabilities assumed | 1,282 | |||
Net assets acquired | 23,120 | |||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | As Initially Reported | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 846 | |||
Inventories | 4,683 | |||
Other current assets | 145 | |||
Property, plant, and equipment | 506 | |||
Intangibles | 6,400 | |||
Goodwill | 11,846 | |||
Total assets acquired | 24,426 | |||
Accounts payable | 1,261 | |||
Accrued payroll | 49 | |||
Other long term liabilities | 100 | |||
Total liabilities assumed | 1,410 | |||
Net assets acquired | 23,016 | |||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | (52) | |||
Inventories | 17 | |||
Other current assets | (51) | |||
Property, plant, and equipment | 13 | |||
Goodwill | 49 | |||
Total assets acquired | (24) | |||
Accounts payable | (27) | |||
Accrued payroll | (1) | |||
Other long term liabilities | (100) | |||
Total liabilities assumed | (128) | |||
Net assets acquired | 104 | |||
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 11,422 | |||
Inventories | 31,722 | |||
Income tax receivable | 68 | |||
Other current assets | 298 | |||
Property, plant, and equipment | 8,232 | |||
Intangibles | 83,350 | |||
Goodwill | 102,910 | |||
Total assets acquired | 238,002 | |||
Accounts payable | 6,232 | |||
Accrued expenses | 1,131 | |||
Accrued payroll | 1,428 | |||
Accrued warranty | 194 | |||
Deferred income taxes | 16,249 | |||
Total liabilities assumed | 25,234 | |||
Net assets acquired | 212,768 | |||
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | As Initially Reported | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | 11,635 | |||
Inventories | 31,269 | |||
Other current assets | 430 | |||
Property, plant, and equipment | 8,232 | |||
Intangibles | 97,850 | |||
Goodwill | 92,801 | |||
Total assets acquired | 242,217 | |||
Accounts payable | 6,214 | |||
Accrued expenses | 973 | |||
Accrued payroll | 1,500 | |||
Accrued income taxes | 6 | |||
Accrued warranty | 98 | |||
Deferred income taxes | 20,658 | |||
Total liabilities assumed | 29,449 | |||
Net assets acquired | 212,768 | |||
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | (213) | |||
Inventories | 453 | |||
Income tax receivable | 68 | |||
Other current assets | (132) | |||
Intangibles | (14,500) | |||
Goodwill | 10,109 | |||
Total assets acquired | (4,215) | |||
Accounts payable | 18 | |||
Accrued expenses | 158 | |||
Accrued payroll | (72) | |||
Accrued income taxes | (6) | |||
Accrued warranty | 96 | |||
Deferred income taxes | (4,409) | |||
Total liabilities assumed | $ (4,215) |
Acquisitions - Identifiable Int
Acquisitions - Identifiable Intangible Assets Acquired and Respective Weighted Average Lives (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jan. 31, 2018 | Apr. 30, 2017 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 172,045 | $ 179,759 |
Weighted Average Life (In years) | 5 years | |
Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 21,130 | 19,430 |
Weighted Average Life (In years) | 6 years | |
Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 92,360 | 105,260 |
Weighted Average Life (In years) | 5 years | |
Order backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,150 | $ 1,150 |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | 6,400 | |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,700 | |
Weighted Average Life (In years) | 5 years 10 months 24 days | |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,600 | |
Weighted Average Life (In years) | 5 years 2 months 12 days | |
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | Trade names | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 3,100 | |
Weighted Average Life (In years) | 5 years 7 months 6 days | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 83,350 | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Developed technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 3,000 | |
Weighted Average Life (In years) | 4 years 1 month 7 days | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Customer relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 62,100 | |
Weighted Average Life (In years) | 5 years | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Trade names | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 17,000 | |
Weighted Average Life (In years) | 4 years 9 months 18 days | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Order backlog | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 1,150 | |
Weighted Average Life (In years) | 3 months 19 days | |
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | Non-competition agreement | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Total intangible assets, gross | $ 100 | |
Weighted Average Life (In years) | 3 years 4 months 24 days |
Acquisitions - Unaudited Pro Fo
Acquisitions - Unaudited Pro Forma Results of Operations (Detail) - Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Jan. 31, 2017 | Jan. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net sales | $ 234,948 | $ 705,062 |
Income from operations | $ 48,789 | $ 154,333 |
Net income per share - diluted | $ 0.57 | $ 1.82 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | |
Goodwill [Line Items] | |||
Beginning Balance | $ 191,098 | $ 169,100 | $ 169,017 |
Adjustments | 64 | 10,152 | 83 |
Acquisitions | 11,846 | ||
Ending Balance | 191,162 | 191,098 | 169,100 |
Firearms Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | 18,389 | 13,770 | 13,770 |
Adjustments | (25) | ||
Acquisitions | 4,619 | ||
Ending Balance | 18,364 | 18,389 | 13,770 |
Outdoor Products & Accessories Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | 172,709 | 155,330 | 155,247 |
Adjustments | 89 | 10,152 | 83 |
Acquisitions | 7,227 | ||
Ending Balance | $ 172,798 | $ 172,709 | $ 155,330 |
Notes and Loans Payable - Addit
Notes and Loans Payable - Additional Information (Detail) - USD ($) | Feb. 06, 2018 | Jan. 31, 2018 | Feb. 28, 2018 | Apr. 30, 2017 | Oct. 27, 2016 | Jul. 06, 2015 | Jun. 30, 2015 | Jun. 18, 2015 | Jun. 15, 2015 | Apr. 30, 2015 |
Debt Instrument [Line Items] | ||||||||||
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. | |||||||||
Credit facility, maturity | Jun. 15, 2020 | |||||||||
Percentage of interest rate protection on term loan | 75.00% | |||||||||
Fair value of the interest rate swap asset | $ 1,700,000 | |||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||||||
Maximum consolidated coverage ratio | 300.00% | |||||||||
Minimum consolidated coverage ratio | 100.00% | |||||||||
Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||||||
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% | |||||||||
Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 175,000,000 | |||||||||
Credit Facilities | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost | $ 1,000,000 | |||||||||
Borrowings outstanding | 75,000,000 | |||||||||
Outstanding letters of credit | $ 1,000,000 | |||||||||
Credit Facilities | LIBOR Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate on borrowings | 3.56% | |||||||||
Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Outstanding debt | $ 89,300,000 | $ 105,000,000 | ||||||||
Principal payments per annum | $ 6,300,000 | |||||||||
Debt instrument, interest rate, effective percentage | 3.56% | |||||||||
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 100% of the principal amount of the 5.000% Senior Notes to be redeemed plus accrued and unpaid interest as of the applicable redemption date. | |||||||||
Redemption price of senior notes | 100.00% | |||||||||
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 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Description of redemption for senior notes | we issued a conditional notice of redemption to holders of our outstanding 5.000% Senior Notes that we intend to redeem all of our outstanding 5.000% Senior Notes on March 8, 2018, or the Redemption Date. The redemption price for the 5.000% Senior Notes will be 100% of the principal amount of the 5.000% Senior Notes, plus accrued and unpaid interest to, but not including, the Redemption Date. | |||||||||
Redemption price of senior notes | 100.00% | |||||||||
5.000% Senior Notes due 2018 | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 30 days | |||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||||||
5.000% Senior Notes due 2018 | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 60 days | |||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 75,000,000 | |||||||||
5.000% Senior Notes due 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, interest rate | 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 New 5.000% Senior Notes at a redemption price of 102.500% of the principal amount of the New 5.000% Senior Notes to be redeemed plus accrued and unpaid interest as of the applicable redemption date. On or after February 28, 2019, we may, at our option, upon not less than 30 nor more than 60 days’ prior notice, redeem all or a portion of the New 5.000% Senior Notes at a redemption price of 100.000% of the principal amount of the New 5.000% Senior Notes to be redeemed plus accrued and unpaid interest as of the applicable redemption date. | |||||||||
Debt instrument maturity date | Aug. 28, 2020 | |||||||||
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 2020 | Debt Instrument Redemption Scenario One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 102.50% | |||||||||
5.000% Senior Notes due 2020 | Debt Instrument Redemption Scenario Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Redemption price of senior notes | 100.00% | |||||||||
5.000% Senior Notes due 2020 | Subsequent Event | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance cost | $ 0 | |||||||||
Notes issued | $ 75,000,000 | |||||||||
Debt instrument, interest rate | 5.00% | |||||||||
5.000% Senior Notes due 2020 | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 50,000,000 | |||||||||
5.000% Senior Notes due 2020 | Minimum | Debt Instrument Redemption Scenario One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 30 days | |||||||||
5.000% Senior Notes due 2020 | Minimum | Debt Instrument Redemption Scenario Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 30 days | |||||||||
5.000% Senior Notes due 2020 | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Senior notes indenture, number of shares allowed for repurchase | $ 75,000,000 | |||||||||
5.000% Senior Notes due 2020 | Maximum | Debt Instrument Redemption Scenario One | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 60 days | |||||||||
5.000% Senior Notes due 2020 | Maximum | Debt Instrument Redemption Scenario Two | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Notice period of senior notes | 60 days | |||||||||
Second Amendment | Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, borrowing capacity | $ 350,000,000 | |||||||||
Debt issuance cost | 525,000 | |||||||||
Credit facility additional borrowing capacity option to increase maximum borrowing capacity | $ 150,000,000 | |||||||||
Credit facility, maturity | Oct. 27, 2021 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Aug. 31, 2017 | Jan. 31, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Reduction in fair value of contingent consideration liability | $ 1,300,000 | |||
Ultimate Survival Technologies, Inc. | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration payable upon financial performance of acquired business | $ 1,700,000 | |||
Business combination, contingent consideration payable performance period | 2 years | |||
Reduction in fair value of contingent consideration liability | 1,300,000 | |||
Business combination contingent consideration liability non-current | 400,000 | |||
Ultimate Survival Technologies, Inc. | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration payable upon financial performance of acquired business | $ 2,000,000 | |||
Gemini Technologies, Incorporated | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Business combination, contingent consideration payable performance period | 3 years | |||
Business combination contingent consideration liability non-current | $ 100,000 | |||
Gemini Technologies, Incorporated | Maximum | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Contingent consideration payable upon financial performance of acquired business | $ 17,100,000 | |||
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% | ||
5.000% Senior Notes due 2020 | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Debt instrument, interest rate | 5.00% | |||
(Level 1) | Fair Value on Recurring Basis | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 38,200,000 | $ 61,500,000 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 | |
Inventory Disclosure [Abstract] | |||
Finished goods | [1] | $ 98,189 | $ 61,080 |
Finished parts | 44,036 | 51,177 | |
Work in process | 6,835 | 9,379 | |
Raw material | 13,236 | 10,046 | |
Total inventories | $ 162,296 | $ 131,682 | |
[1] | The increase in finished goods inventory was primarily related to our Firearms segment. |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | $ 172,045 | $ 179,759 |
Total definite-lived intangible assets, Accumulated Amortization | (54,082) | (38,668) |
Total definite-lived intangible assets, Net Carrying Amount | 117,963 | 141,091 |
Indefinite-lived intangible assets, Net Carrying Amount | 226 | 226 |
Total Intangible assets, Gross Carrying Amount | 172,271 | 179,985 |
Total Intangible assets, Net Carrying Amount | 118,189 | 141,317 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 92,360 | 105,260 |
Total definite-lived intangible assets, Accumulated Amortization | (24,898) | (16,463) |
Total definite-lived intangible assets, Net Carrying Amount | 67,462 | 88,797 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 21,130 | 19,430 |
Total definite-lived intangible assets, Accumulated Amortization | (7,416) | (5,436) |
Total definite-lived intangible assets, Net Carrying Amount | 13,714 | 13,994 |
Patents, trademarks, and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 56,723 | 53,308 |
Total definite-lived intangible assets, Accumulated Amortization | (20,618) | (15,619) |
Total definite-lived intangible assets, Net Carrying Amount | 36,105 | 37,689 |
Backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 1,150 | 1,150 |
Total definite-lived intangible assets, Accumulated Amortization | (1,150) | (1,150) |
Definite-lived intangible assets excluding patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 171,363 | 179,148 |
Total definite-lived intangible assets, Accumulated Amortization | (54,082) | (38,668) |
Total definite-lived intangible assets, Net Carrying Amount | 117,281 | 140,480 |
Patents in progress | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Gross Carrying Amount | 682 | 611 |
Total definite-lived intangible assets, Net Carrying Amount | $ 682 | $ 611 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 5.4 | $ 5.9 | $ 15.4 | $ 14.2 |
Weighted-average period for amortization of intangible assets | 5 years | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 5 years | |||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 6 years | |||
Patents, trademarks, and trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average period for amortization of intangible assets | 5 years |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Future Expected Amortization Expense (Detail) - USD ($) $ in Thousands | Jan. 31, 2018 | Apr. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total definite-lived intangible assets, Net Carrying Amount | $ 117,963 | $ 141,091 |
Outdoor Products & Accessories Segment | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | 5,597 | |
2,019 | 21,971 | |
2,020 | 19,096 | |
2,021 | 16,488 | |
2,022 | 14,109 | |
Thereafter | 40,020 | |
Total definite-lived intangible assets, Net Carrying Amount | $ 117,281 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 31, 2018USD ($)shares | Jan. 31, 2018USD ($)OptionPlanshares | Jan. 31, 2017USD ($)shares | Apr. 30, 2017USD ($)shares | Jun. 30, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ | $ 50,000,000 | ||||
Repurchase of common stock | 0 | 2,600,000 | |||
Number of incentive stock option plans | OptionPlan | 2 | ||||
Intrinsic value of stock outstanding | $ | $ 1,800,000 | $ 1,800,000 | $ 4,900,000 | ||
Intrinsic value of stock exercisable | $ | 1,800,000 | 1,800,000 | 4,900,000 | ||
Intrinsic value of stock exercised | $ | 28,600 | 1,300,000 | |||
Unrecognized compensation cost of outstanding stock options | $ | 0 | 0 | |||
Stock-based compensation expense | $ | $ 5,800,000 | $ 6,400,000 | |||
Performance period | 3 years | ||||
Percentage of maximum potential aggregate award granted | 200.00% | ||||
Percentage of stock outperform in order for target award to vest | 5.00% | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 232,672 | 255,109 | |||
Stock units, forfeited | 230,441 | 18,714 | |||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 105,500 | 118,500 | |||
Share based payment award percentage of award achieved | 115.20% | 200.00% | |||
RSUs and PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 5,200,000 | $ 5,800,000 | |||
Stock units, awarded | 248,676 | 373,609 | |||
Stock units, vested | 298,727 | 402,335 | |||
Grant date fair value of vested RSUs and PSUs | $ | $ 6,200,000 | $ 11,000,000 | |||
Stock units, forfeited | 230,441 | 18,714 | |||
Unrecognized compensation cost related to unvested RSUs and PSUs | $ | $ 8,700,000 | $ 8,700,000 | |||
Weighted average remaining contractual term | 1 year 4 months 24 days | ||||
Non-Executive Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 189,360 | 200,213 | |||
Directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 43,312 | 24,896 | |||
Executive Officer | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, awarded | 30,000 | ||||
Executive Officer | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock units, vested | 121,504 | 237,000 | |||
2013 Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period of award vested exercisable | 10 years | ||||
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock shares excluded from computation of diluted earnings per share | 17,362 | 10,171 | |||
Shares issued under employee stock purchase plan | 81,643 | 66,812 | |||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase authorization | $ | $ 50,000,000 | ||||
Maximum | 2013 Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period to award vested and calculate volatility rate | 4 years | ||||
Minimum | 2013 Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period to award vested and calculate volatility rate | 3 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 | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 11,395 | $ 32,453 | $ 12,464 | $ 100,161 |
Basic earnings, Shares | 54,122 | 56,342 | 54,024 | 56,208 |
Effect of dilutive stock awards, Shares | 535 | 785 | 806 | 958 |
Diluted earnings, Shares | 54,657 | 57,127 | 54,830 | 57,166 |
Basic earnings, Per Share Amount | $ 0.21 | $ 0.58 | $ 0.23 | $ 1.78 |
Effect of dilutive stock awards, Per Share Amount | (0.01) | (0.03) | ||
Diluted earnings, Per Share Amount | $ 0.21 | $ 0.57 | $ 0.23 | $ 1.75 |
Stockholders' Equity - Share Ba
Stockholders' Equity - Share Based Compensation Stock Options Activity (Detail) - $ / shares | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Shares | ||
Options outstanding, beginning of year, Shares | 335,160 | 389,360 |
Exercised during the period, Shares | (4,000) | (54,200) |
Options outstanding, end of period, Shares | 331,160 | 335,160 |
Weighted average remaining contractual life | 3 years 3 months 10 days | 4 years 3 months 3 days |
Options exercisable, end of period, Shares | 331,160 | 335,160 |
Weighted average remaining contractual life | 3 years 3 months 10 days | 4 years 3 months 3 days |
Weighted-Average Exercise Price | ||
Options outstanding, beginning of year, Weighted-Average Exercise Price | $ 6.58 | $ 6.16 |
Exercised during period, Weighted-Average Exercise Price | 5.69 | 3.57 |
Options outstanding, end of period, Weighted-Average Exercise Price | 6.59 | 6.58 |
Options exercisable, end of period, Weighted-Average Exercise Price | $ 6.59 | $ 6.58 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activity in Unvested RSUs and PSUs (Detail) - RSUs and PSUs - shares | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Summary of activity in unvested restricted stock units and performance share units | ||
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period | 1,428,848 | 1,215,753 |
Restricted Stock Units, Awarded | 248,676 | 373,609 |
Restricted Stock Units, Vested | (298,727) | (402,335) |
Restricted Stock Units, Forfeited | (230,441) | (18,714) |
Restricted Stock Units, RSUs and PSUs outstanding, end of period | 1,148,356 | 1,168,313 |
Stockholders' Equity - Summar42
Stockholders' Equity - Summary of Activity in RSUs and PSUs (Detail) - RSUs and PSUs - $ / shares | 9 Months Ended | |
Jan. 31, 2018 | Jan. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of period | $ 18.46 | $ 15.38 |
Weighted Average Grant Date Fair Value, Awarded | 20.48 | 18.26 |
Weighted Average Grant Date Fair Value, Vested | 16.51 | 11.35 |
Weighted Average Grant Date Fair Value, Forfeited | 16.65 | 17.21 |
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period | $ 19.77 | $ 17.66 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 22, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 |
Income Tax Contingency [Line Items] | |||||||||
U.S. federal statutory income tax | 21.00% | 35.00% | |||||||
Tax reform, accounting complete | false | ||||||||
Tax reform, income tax benefit | $ 9,400,000 | ||||||||
Deferred tax assets and liabilities enacted corporate federal tax rates, cash | $ 0 | ||||||||
Income tax provisions effective tax rates | (288.90%) | 32.80% | (240.50%) | 32.80% | |||||
Income tax provisions effective tax rates excluding tax reform and other discrete items | 42.90% | 41.50% | |||||||
Scenario, Forecast | |||||||||
Income Tax Contingency [Line Items] | |||||||||
U.S. federal statutory income tax | 21.00% | 29.90% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Oct. 26, 2017USD ($)ft²Option | Jan. 31, 2018USD ($) | Jan. 31, 2018USD ($)CaseClaim |
Schedule Of Commitments And Contingencies [Line Items] | |||
Number of Product liability cases | Case | 5 | ||
Number of Other product liability claims | Claim | 6 | ||
Ryan Boone County, LLC | Distribution Center in Columbia | Missouri | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Area of leased property | ft² | 632,000 | ||
Capital lease term of contract | 20 years | ||
Lease extension option term | 5 years | ||
Number of options to extend lease term | Option | 6 | ||
Expect to spend expenses in the term of period | 2 years | ||
Ryan Boone County, LLC | Distribution Center in Columbia | Missouri | Property, Plant, and Equipment | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Construction in progress | $ 11,100,000 | $ 11,100,000 | |
Ryan Boone County, LLC | Distribution Center in Columbia | Missouri | Other Non-current Liabilities | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Capital lease payable | 11,100,000 | 11,100,000 | |
Minimum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | 75,000 | ||
Minimum | Ryan Boone County, LLC | Distribution Center in Columbia | Missouri | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Estimated annual lease expense including base rent | $ 3,300,000 | ||
Estimated total cost of the building | 45,000,000 | ||
Estimated project cost to be recorded as right of use asset | 30,000,000 | ||
Estimated expenses related to material handling equipment, information technology systems and other capital projects | 25,000,000 | ||
Maximum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 900,000 | ||
Maximum | Ryan Boone County, LLC | Distribution Center in Columbia | Missouri | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Estimated annual lease expense including base rent | 3,500,000 | ||
Estimated total cost of the building | 50,000,000 | ||
Estimated project cost to be recorded as right of use asset | 35,000,000 | ||
Estimated expenses related to material handling equipment, information technology systems and other capital projects | $ 30,000,000 | ||
Gemini Technologies, Incorporated | Smith & Wesson Corp | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Compensatory damages sought | $ 18,600,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Jan. 31, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Firearms Segment | |
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 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2017 |
Segment Reporting Information [Line Items] | ||||
Total assets | $ 765,421 | $ 788,036 | ||
Property, plant, and equipment, net | 153,580 | 149,685 | ||
Intangibles, net | 118,189 | 141,317 | ||
Goodwill | 191,162 | $ 191,098 | $ 169,100 | 169,017 |
Firearms Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 362,975 | 393,341 | ||
Property, plant, and equipment, net | 140,586 | 135,985 | ||
Intangibles, net | 5,002 | 2,792 | ||
Goodwill | 18,364 | 18,389 | 13,770 | 13,770 |
Outdoor Products & Accessories Segment | ||||
Segment Reporting Information [Line Items] | ||||
Total assets | 402,446 | 394,695 | ||
Property, plant, and equipment, net | 12,994 | 13,700 | ||
Intangibles, net | 113,187 | 138,525 | ||
Goodwill | $ 172,798 | $ 172,709 | $ 155,330 | $ 155,247 |
Segment Information - Schedul47
Segment Information - Schedule of Results by Business Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | ||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | $ 157,376 | $ 233,523 | $ 434,825 | $ 674,002 | ||||
Cost of sales | [1] | 110,459 | 134,212 | 296,477 | 389,517 | ||||
Gross margin | [1] | 46,917 | 99,311 | 138,348 | 284,485 | ||||
Operating income/(loss) | [1] | 5,842 | 50,209 | 10,632 | 154,888 | ||||
Income tax expense/(benefit) | [1] | (8,465) | [2] | 15,809 | (8,803) | [2] | 48,562 | ||
Intersegment Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | (4,992) | (4,037) | (11,726) | (9,126) | ||||
Cost of sales | [1] | (4,491) | (4,317) | (10,210) | (8,400) | ||||
Gross margin | [1] | (501) | 280 | (1,516) | (726) | ||||
Operating income/(loss) | [1] | 7,697 | 14,726 | 34,377 | 38,778 | ||||
Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 157,376 | 233,523 | 434,825 | 674,002 | ||||
Corporate | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Operating income/(loss) | [1] | (10,517) | (13,131) | (33,030) | (35,912) | ||||
Income tax expense/(benefit) | [1] | (15,563) | [2] | (2,865) | (21,396) | [2] | (9,796) | ||
Firearms Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 116,882 | 197,025 | 315,545 | 583,900 | ||||
Firearms Segment | Intersegment Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 762 | 1,090 | 2,955 | 2,816 | ||||
Firearms Segment | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 117,644 | 198,115 | 318,500 | 586,716 | ||||
Cost of sales | [1] | 91,301 | 118,207 | 236,224 | 344,558 | ||||
Gross margin | [1] | 26,343 | 79,908 | 82,276 | 242,158 | ||||
Operating income/(loss) | [1] | 7,604 | 50,097 | 10,536 | 156,771 | ||||
Income tax expense/(benefit) | [1] | 14,519 | [2] | 19,453 | 20,581 | [2] | 60,216 | ||
Outdoor Products & Accessories Segment | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 40,494 | 36,498 | 119,280 | 90,102 | ||||
Outdoor Products & Accessories Segment | Intersegment Eliminations | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 4,230 | 2,947 | 8,771 | 6,310 | ||||
Outdoor Products & Accessories Segment | Operating Segments | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total net sales | [1] | 44,724 | 39,445 | 128,051 | 96,412 | ||||
Cost of sales | [1] | 23,649 | 20,322 | [3] | 70,463 | 53,359 | [4] | ||
Gross margin | [1] | 21,075 | 19,123 | 57,588 | [5] | 43,053 | |||
Operating income/(loss) | [1] | 1,058 | [6] | (1,483) | [7] | (1,251) | (4,749) | [8] | |
Income tax expense/(benefit) | [1] | $ (7,421) | [2] | $ (779) | $ (7,988) | [2] | $ (1,858) | ||
[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] | Amounts include an income tax benefit of approximately $9.4 million, primarily caused by the effect of Tax Reform, which resulted in the remeasurement of deferred tax assets and liabilities at lower enacted corporate federal tax rates. | ||||||||
[3] | Amount includes $777,000 of additional cost of goods sold from the fair value step-up in inventory and backlog expense related to the 2017 Acquisitions. | ||||||||
[4] | Amount includes $4.6 million of additional cost of goods sold from the fair value inventory step-up and backlog expense related to the 2017 Acquisitions. | ||||||||
[5] | Amount includes $8.1 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. | ||||||||
[6] | Amount includes $3.0 million of amortization of intangible assets identified as a result of the 2017 and 2018 Acquisitions. | ||||||||
[7] | Amount includes $3.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. | ||||||||
[8] | Amount includes $5.1 million of amortization of intangible assets identified as a result of the 2017 Acquisitions. |
Segment Information - Schedul48
Segment Information - Schedule of Results by Business Segment (Parenthetical) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2018 | Jan. 31, 2017 | Jan. 31, 2018 | Jan. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||
Amortization expense of intangible assets | $ 5,400,000 | $ 5,900,000 | $ 15,400,000 | $ 14,200,000 |
Income tax benefit by effect of tax reform | 9,400,000 | 9,400,000 | ||
Gemini Technologies, Incorporated and Bubba Blade Branded Products from Fish Tales, LLC | ||||
Segment Reporting Information [Line Items] | ||||
Amortization expense of intangible assets | 3,000,000 | 8,100,000 | ||
Taylor Brands, LLC, Crimson Trace Corporation and Ultimate Survival Technologies, Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Amortization expense of intangible assets | $ 3,000,000 | 3,100,000 | $ 8,100,000 | 5,100,000 |
Additional cost of goods sold | $ 777,000 | $ 4,600,000 |