Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Nov. 03, 2018 | Nov. 29, 2018 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 3, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | SPWH | |
Entity Registrant Name | SPORTSMAN'S WAREHOUSE HOLDINGS, INC. | |
Entity Central Index Key | 1,132,105 | |
Current Fiscal Year End Date | --02-02 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 42,938,385 | |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
Current assets: | ||
Cash | $ 1,892 | $ 1,769 |
Accounts receivable, net | 419 | 319 |
Merchandise inventories | 369,057 | 270,594 |
Income tax receivable | 1,617 | |
Prepaid expenses and other | 12,092 | 8,073 |
Total current assets | 385,077 | 280,755 |
Property and equipment, net | 93,273 | 94,035 |
Deferred income taxes | 1,517 | 4,595 |
Definite lived intangibles, net | 252 | 276 |
Total assets | 480,119 | 379,661 |
Current liabilities: | ||
Accounts payable | 91,511 | 36,788 |
Accrued expenses | 55,664 | 50,602 |
Income taxes payable | 2,586 | |
Revolving line of credit | 181,566 | 59,992 |
Current portion of long-term debt, net of discount and debt issuance costs | 7,915 | 990 |
Current portion of deferred rent | 5,033 | 4,593 |
Total current liabilities | 341,689 | 155,551 |
Long-term liabilities: | ||
Long-term debt, net of discount, debt issuance costs, and current portion | 29,696 | 132,349 |
Deferred rent, noncurrent | 41,244 | 41,963 |
Total long-term liabilities | 70,940 | 174,312 |
Total liabilities | 412,629 | 329,863 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value; 20,000 shares authorized; 0 shares issued and outstanding | ||
Common stock, $.01 par value; 100,000 shares authorized; 42,938 and 42,617 shares issued and outstanding, respectively | 429 | 426 |
Additional paid-in capital | 84,131 | 82,197 |
Accumulated deficit | (17,070) | (32,825) |
Total stockholders' equity | 67,490 | 49,798 |
Total liabilities and stockholders' equity | $ 480,119 | $ 379,661 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 42,938 | 42,617 |
Common stock, shares outstanding | 42,938 | 42,617 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 223,099 | $ 218,115 | $ 606,447 | $ 566,506 |
Cost of goods sold | 145,518 | 141,152 | 401,022 | 372,310 |
Gross profit | 77,581 | 76,963 | 205,425 | 194,196 |
Selling, general, and administrative expenses | 60,070 | 57,443 | 178,374 | 164,207 |
Income from operations | 17,511 | 19,520 | 27,051 | 29,989 |
Interest expense | (2,633) | (3,494) | (10,524) | (10,081) |
Income before income taxes | 14,878 | 16,026 | 16,527 | 19,908 |
Income tax expense | 2,480 | 6,218 | 3,406 | 8,053 |
Net income | $ 12,398 | $ 9,808 | $ 13,121 | $ 11,855 |
Income per share: | ||||
Basic | $ 0.29 | $ 0.23 | $ 0.31 | $ 0.28 |
Diluted | $ 0.29 | $ 0.23 | $ 0.31 | $ 0.28 |
Weighted average shares outstanding: | ||||
Basic | 42,938 | 42,576 | 42,854 | 42,464 |
Diluted | 43,094 | 42,611 | 42,937 | 42,501 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2018 | Oct. 28, 2017 | |
Cash flows from operating activities: | ||
Net Income | $ 13,121 | $ 11,855 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation of property and equipment | 13,317 | 11,551 |
Amortization and write-off of discount on debt and deferred financing fees | 1,959 | 534 |
Amortization of definite lived intangible | 283 | 1,355 |
Change in deferred rent | 8,284 | |
Change in deferred rent | (280) | |
(Gain) Loss on asset dispositions | 30 | (14) |
Deferred income taxes | 2,194 | 612 |
Stock-based compensation | 2,435 | 1,437 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (100) | 7 |
Merchandise inventories | (98,463) | (72,037) |
Prepaid expenses and other | (2,195) | 3,202 |
Accounts payable | 55,204 | 40,638 |
Accrued expenses | 2,277 | (2,078) |
Income taxes payable and receivable | (4,203) | 2,231 |
Net cash (used in) provided by operating activities | (14,421) | 7,577 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (15,183) | (39,220) |
Purchase of intangible asset | (259) | |
Proceeds from deemed sale-leaseback transactions | 1,717 | 6,130 |
Proceeds from sale of property and equipment | 226 | 14 |
Net cash used in investing activities | (13,499) | (33,076) |
Cash flows from financing activities: | ||
Net borrowings on line of credit | 121,574 | 17,482 |
Increase in book overdraft | 5,424 | 10,157 |
Proceeds from issuance of common stock per employee stock purchase plan | 202 | 283 |
Payment of withholdings on restricted stock units | (699) | (638) |
Borrowings on term loan | 40,000 | |
Payment of deferred financing costs | (1,331) | (341) |
Principal payments on long-term debt | (137,127) | (1,200) |
Net cash provided by financing activities | 28,043 | 25,743 |
Net change in cash | 123 | 244 |
Cash at beginning of period | 1,769 | 1,911 |
Cash at end of period | 1,892 | 2,155 |
Cash paid during the period for: | ||
Interest, net of amounts capitalized | 10,411 | 9,469 |
Income taxes | 5,616 | 5,137 |
Supplemental schedule of noncash investing activities: | ||
Purchases of property and equipment included in accounts payable and accrued expenses | $ 487 | $ 214 |
Description of Business and Bas
Description of Business and Basis of Presentation | 9 Months Ended |
Nov. 03, 2018 | |
Description of Business and Basis of Presentation | |
Description of Business and Basis of Presentation | (1) Description of Business and Basis of Presentation Description of Business Sportsman’s Warehouse Holdings, Inc. (“Holdings”) and its subsidiaries (collectively, the “Company”) operate retail sporting goods stores. As of November 3, 2018, the Company operated 92 stores in 23 states. The Company also operates an e-commerce platform at www.sportsmanswarehouse.com. The Company’s stores and website are aggregated into one single operating and reportable segment. Basis of Presentation The condensed consolidated financial statements included herein are unaudited and have been prepared by management of the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The Company’s condensed consolidated balance sheet as of February 3, 2018 was derived from the Company’s audited consolidated balance sheet as of that date. All other condensed consolidated financial statements contained herein are unaudited and reflect all adjustments that are, in the opinion of management, necessary to summarize fairly our condensed consolidated financial statements for the periods presented. All of these adjustments are of a normal recurring nature. The results of the fiscal quarter ended November 3, 2018 are not necessarily indicative of the results to be obtained for the year ending February 2, 2019. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2018 filed with the SEC on March 29, 2018 (the “Fiscal 2017 Form 10-K”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Nov. 03, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies The Company’s significant accounting policies are described in Note 1 to the Company’s Fiscal 2017 Form 10-K. Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. Adoption of ASC Topic 606, “Revenue from Contracts with Customers” The Company adopted Accounting Standard Codification (“ASC”) Topic 606 on February 4, 2018, using the modified retrospective approach to all open contracts, with the cumulative effect of adopting the new standard being recognized in retained earnings at February 4, 2018. Therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. The adoption of Topic 606 resulted in an increase in prepaids and other assets of $1,054 for the recognition of the right of return assets; an increase in accrued expenses relating to the sales return liability of $1,054 for the recognition of the sales return liability on a gross basis; a decrease in accrued expenses of $3,521 relating to the breakage of loyalty rewards and gift cards in order to adjust the breakage pattern of the loyalty program and gift cards to match the usage; a decrease of $884 in deferred tax assets relating to the tax impact of the entries recorded for the gift card and loyalty program liabilities; and a decrease in accumulated deficit of $2,637 as a cumulative effect of the adoption. The largest driver of changes for the adoption of Topic 606 was the change in the method of estimating breakage for the Company’s outstanding gift cards and loyalty reward liabilities. Under Topic 605, this breakage was historically recorded when it was determined that the gift cards or loyalty reward points were not going to be redeemed, which was after two years for gift cards and 18 months for loyalty reward points. Under Topic 606, the breakage recognized for the loyalty reward program and gift cards is now estimated based off of historical breakage percentages, and is recognized in-line with the expected usage of the loyalty points and gift cards. The accounts that changed under the adoption of Topic 606 for the condensed consolidated balance sheet as of and for the 39 weeks ended November 3, 2018 have been outlined as follows: Condensed Consolidated Balance Sheet Changes As Reported Adjustments Balances without adoption of Topic 606 Prepaids expenses and other $ 12,092 $ (1,433) $ 10,659 Accrued expenses 55,664 2,088 57,752 Deferred income taxes 1,517 884 2,401 Accumulated deficit (17,070) (2,637) (19,707) Revenue recognition accounting policy The Company operates solely as an outdoor retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the United States and online. Generally, all revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities. Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: · Retail store sales · E-commerce sales · Gift cards and loyalty reward program For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the products are tendered for delivery to the common carrier. The transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract that does not vary over the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated merchandise inventory cost related to the sales returns is recorded in prepaid expenses and other. The estimated refund liabilities are recorded in accrued expenses. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. Contract liabilities are recognized primarily for gift card sales and our loyalty reward program. Cash received from the sale of gift cards is recorded as a contract liability in accrued expenses, and the Company recognizes revenue upon the customer’s redemption of the gift card. Gift card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of 2.5% when no escheat liability to relevant jurisdictions exists. Based upon historical experience, gift cards are predominantly redeemed in the first two years following their issuance date. The Company does not sell or provide gift cards that carry expiration dates. ASC 606 requires the Company to allocate the transaction price between the goods and the loyalty reward points based on the relative stand alone selling price. The Company recognized revenue for the breakage of loyalty reward points as revenue in proportion to the pattern of customer redemption of the points by applying a historical breakage rate of 25% when no escheat liability to relevant jurisdictions exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns We estimate a reserve for sales returns and record the respective reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience of actual returns and customer return rights are the key factors used in determining the estimated sales returns. Contract Balances The following table provides information about right of return assets, contract liabilities, and sales return liabilities with customers as of November 3, 2018: November 3, 2018 Right of return assets, which are included in prepaid expenses and other $ 1,433 Estimated contract liabilities, net of breakage 15,681 Sales return liabilities, which are included in accrued expenses 2,155 For the 13 and 39 weeks ended November 3, 2018 the Company recognized approximately $147 and $652 in gift card breakage, respectively. For the 13 and 39 weeks ended November 3, 2018 the Company recognized approximately $327 and $880 in loyalty reward breakage, respectively. Gift card and loyalty reward breakage revenue for the 13 and 39 weeks ended November 3, 2018 reported under ASC 606 were not materially different from the amounts that would have been reported under the previous guidance of ASC 605. The Company will continue to monitor future quarters for materiality. The impact of these adjustments on the statement of cash flow for the period ended November 3, 2018 were recorded in cash used in operating activities. The current balance of the right of return assets is the expected amount of inventory to be returned that is expected to be resold. The current balance of the contract liabilities primarily relates to the gift card and loyalty reward program liabilities. The Company expects the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions over the next two years. The current balance of sales return liabilities is the expected amount of sales returns from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application for Topic 606: · The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at the shipping point (when the customer gains control). Revenue associated with shipping and handling is not material. The costs associated with fulfillment are recorded in costs of goods sold. · The Company has elected to apply the practical expedient, relative to sales tax collected, which allows an entity to exclude from its transaction price any amounts collected from customers for all sales (and other similar) taxes. Disaggregation of revenue from contracts with customers In the following table, revenue from contracts with customers is disaggregated by department. The percentage of net sales related to our departments for the 13 and 39 weeks ended November 3, 2018 and October 28, 2017, was approximately: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, Department Product Offerings 2018 2017 2018 2017 Camping Backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents and tools Clothing Camouflage, jackets, hats, outerwear, sportswear, technical gear and work wear Fishing Bait, electronics, fishing rods, flotation items, fly fishing, lines, lures, reels, tackle and small boats Footwear Hiking boots, socks, sport sandals, technical footwear, trail shoes, casual shoes, waders and work boots Hunting and Shooting Ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, reloading equipment and shooting gear Optics, Electronics, Accessories, and Other Gift items, GPS devices, knives, lighting, optics (e.g. binoculars), two-way radios, and license and background check revenue, net of revenue discounts Total Recent Accounting Pronouncements Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of fiscal year 2019. Early adoption of ASU 2016-02 is permitted. In July 2018, the FASB issued ASU 2018-11 which provided additional transition methods and a lessor practical expedient for separating lease and non-lease components. The Company plans to adopt the standard during the first quarter of fiscal year 2019. The new leases standard provides a modified retrospective transition approach or a date of initial application approach for adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. Management is currently evaluating the impact of adopting ASU 2016-02 on the Company’s consolidated financial statements, including which adoption method to apply and whether to elect the practical expedients outlined in the new standard. Currently all of the Company’s store and corporate locations are accounted for as operating leases, and therefore are not recorded on our balance sheet. The Company expects this adoption will result in a material increase in the assets and liabilities on the Company’s consolidated balance sheets. Once the Company adopts this new standard, it expects that, for the majority of its leases, the leases would include the amortization of the right-of-use asset and the recognition of interest expense based on the lessee’s incremental borrowing rate (or the rate implicit in the lease, if known) on the payment of the lease obligation. In preparation for the adoption of the guidance, the Company is in the process of implementing controls and system changes to enable the preparation of financial information. Intangible – Goodwill and Other In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. Management believes ASU 2017-04 will have no impact on the Company’s consolidated financial statements. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Nov. 03, 2018 | |
Property and Equipment. | |
Property and Equipment | (3) Property and Equipment Property and equipment as of November 3, 2018 and February 3, 2018 were as follows: November 3, February 3, 2018 2018 Furniture, fixtures, and equipment $ 69,896 $ 65,437 Leasehold improvements 91,268 84,345 Construction in progress 3,531 2,434 Total property and equipment, gross 164,696 152,216 Less accumulated depreciation and amortization (71,423) (58,181) Total property and equipment, net $ 93,273 $ 94,035 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Nov. 03, 2018 | |
Accrued Expenses | |
Accrued Expenses | (4) Accrued Expenses Accrued expenses consisted of the following as of November 3, 2018 and February 3, 2018: November 3, February 3, 2018 2018 Book overdraft $ 15,368 $ 9,944 Unearned revenue 16,924 22,874 Accrued payroll and related expenses 9,637 8,004 Sales and use tax payable 4,761 3,277 Accrued construction costs 431 605 Other 8,543 5,898 Total Accrued Expenses $ 55,664 $ 50,602 |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Nov. 03, 2018 | |
Revolving Line of Credit | |
Revolving Line of Credit | (5) Revolving Line of Credit On May 23, 2018, Sportsman’s Warehouse, Inc. (“SWI”), a wholly owned subsidiary of the Company, as borrower, and Wells Fargo Bank, National Association (“Wells Fargo”), with a consortium of banks led by Wells Fargo, entered into an Amended and Restated Credit Agreement (as amended, restated, supplemented or otherwise modified, the “Amended Credit Agreement”). The Amended Credit Agreement amended and restated in its entirety that certain Credit Agreement, dated as of May 28, 2010, by and among SWI, as borrower, and Wells Fargo, as lender, and the other parties listed on the signature pages thereto. The Amended Credit Agreement increased the amount available to borrow under the Company’s senior secured revolving credit facility (“Revolving Line of Credit”) from $150,000 to $250,000, subject to a borrowing base calculation, and provided for a new $40,000 term loan (the “New Term Loan”). In conjunction with the Amended Credit Agreement, the Company incurred $1,331 of fees paid to various parties which were capitalized. Fees associated with the Revolving Line of Credit were recorded in prepaid and other assets. Fees associated with the New Term Loan offset the loan balance on the condensed consolidated balance sheet of the Company. As of November 3, 2018, the Company had $190,855 in outstanding revolving loans under the Amended Credit Agreement and as of February 3, 2018, the Company had $66,621 in outstanding revolving loans under the Revolving Line of Credit. Amounts outstanding are offset on the condensed consolidated balance sheets by amounts in depository accounts under lock-box or similar arrangements, which were $9,289 and $6,629 as of November 3, 2018 and February 3, 2018, respectively. As of November 3, 2018, the Company had stand-by commercial letters of credit of $1,505 under the terms of the Revolving Line of Credit. The Amended Credit Agreement contains customary affirmative and negative covenants, including covenants that limit the Company’s ability to incur, create or assume certain indebtedness, to create, incur or assume certain liens, to make certain investments, to make sales, transfers and dispositions of certain property and to undergo certain fundamental changes, including certain mergers, liquidations and consolidations. The Amended Credit Agreement also requires the Company to maintain a minimum availability at all times of not less than 10% of the gross borrowing base. The Amended Credit Agreement also contains customary events of default. The Revolving Line of Credit matures on May 23, 2023 . As of November 3, 2018, the Amended Credit Agreement had $1,148 in outstanding deferred financing fees and as of February 3, 2018, the Revolving Line of Credit had $393 in outstanding deferred financing fees. During the 13 weeks and 39 weeks ended November 3, 2018, the Company recognized $67 and $129, respectively of non-cash interest expense with respect to the amortization of these deferred financing fees. During the 13 and 39 weeks ended October 28, 2017, the Company recognized $26 and $106, respectively of non-cash interest expense with respect to the amortization of deferred financing fees. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Nov. 03, 2018 | |
Long-Term Debt | |
Long-Term Debt | (6) Long-Term Debt Long-term debt consisted of the following as of November 3, 2018 and February 3, 2018: November 3, February 3, 2018 2018 Prior Term Loan $ — $ 135,127 New Term loan 38,000 — Less discount — (678) Less debt issuance costs (389) (1,110) 37,611 133,339 Less current portion, net of discount and debt issuance costs (7,915) (990) Long-term portion $ 29,696 $ 132,349 Term Loan On May 23, 2018, the Company entered into the New Term Loan, which was issued at a price of 100% of the aggregate principal amount of $40,000 and has a maturity date of May 23, 2023. Also on May 23, 2018, the Company borrowed $135,400 under the Revolving Line of Credit and used the proceeds from the New Term Loan and the Revolving Line of Credit to repay the Company’s prior term loan with a financial institution that had an outstanding principal balance of $134,700 and was scheduled to mature on December 3, 2020 (the”Prior Term Loan”). The New Term Loan bears interest at a rate of LIBOR plus 5.75%. As of November 3, 2018, and February 3, 2018, the New Term Loan and Prior Term Loan, respectively had an outstanding balance of $38,000 and $135,127, respectively. The outstanding amounts as of November 3, 2018 and February 3, 2018 are offset on the condensed consolidated balance sheets by an unamortized discount of $0 and $678, respectively, and debt issuance costs of $389 and $1,110, respectively. During the 13 and 39 weeks ended November 3, 2018, the Company recognized $0 and $678, respectively, of non-cash interest expense with respect to the amortization of the discount. During the 13 and 39 weeks ended November 3, 2018, the Company recognized $21 and $1,152, respectively, of non-cash interest expense with respect to the amortization of the debt issuance costs. Of the discount and debt issuance cost amortization recorded during the 39 weeks ended November 3, 2018, $1,617 relates to the write-off associated with the extinguishment of the Prior Term Loan. During the 13 and 39 weeks ended October 28, 2017, the Company recognized $59 and $159, respectively, of non-cash interest expense with respect to the amortization of the discount. During the 13 and 39 weeks ended October 28, 2017, the Company recognized $99 and $269, respectively, of non-cash interest expense with respect to the amortization of the debt issuance costs. During the 13 weeks ended November 3, 2018, the Company made the required quarterly payment on the Term Loan of $2,000. Restricted Net Assets The provisions of the New Term Loan and the Revolving Line of Credit restrict all of the net assets of the Company’s consolidated subsidiaries, which constitute all of the net assets on the Company’s condensed consolidated balance sheet as of November 3, 2018, from being used to pay any dividends without prior written consent from the financial institutions party to the Company’s New Term Loan and Revolving Line of Credit. |
Income Taxes
Income Taxes | 9 Months Ended |
Nov. 03, 2018 | |
Income Taxes | |
Income Taxes | (7) Income Taxes The Company recognized income tax expense of $2,480 and $6,218 in the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. The Company’s effective tax rate for the 13 weeks ended November 3, 2018 and October 28, 2017 was 16.7% and 38.8%, respectively. The Company recognized an income tax expense of $3,406 and $8,053 in the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. The Company’s effective tax rate for the 39 weeks ended November 3, 2018 and October 28, 2017 was 20.6% and 40.5%, respectively. The change in the effective tax rate for the 13 and 39 weeks ended November 3, 2018, was primarily due to US tax reform enacted during December 2017 which reduced the federal statutory tax rate of 35.0% to 21.0% and a discrete item relating to a change in tax depreciation methods filed with the fiscal 2017 federal tax return in fiscal 2018 for specific classes of fixed assets which accelerated taxable depreciation. The Company’s effective tax rate will generally differ from the U.S. Federal statutory rate of 21.0%, due to state taxes, permanent items, and discrete items relating to method changes and stock award deductions. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share | |
Earnings Per Share | (8) Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding, reduced by the number of shares repurchased and held in treasury, during the period. Diluted earnings per share represents basic earnings per share adjusted to include the potentially dilutive effect of outstanding share option awards, nonvested share awards and nonvested share unit awards. The following table sets forth the computation of basic and diluted income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 Net Income $ 12,398 $ 9,808 $ 13,121 $ 11,855 Weighted-average shares of common stock outstanding: Basic 42,938 42,576 42,854 42,464 Dilutive effect of common stock equivalents 156 35 83 37 Diluted 43,094 42,611 42,937 42,501 Basic earnings per share $ 0.29 $ 0.23 $ 0.31 $ 0.28 Diluted earnings per share $ 0.29 $ 0.23 $ 0.31 $ 0.28 Restricted stock units considered anti-dilutive and excluded in the calculation 7 222 49 233 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Nov. 03, 2018 | |
Stock-Based Compensation | |
Stock-Based Compensation | (9) Stock-Based Compensation Stock-Based Compensation During the 13 weeks ended November 3, 2018 and October 28, 2017, the Company recognized total stock-based compensation expense of $366 and $386, respectively. During the 39 weeks ended November 3, 2018 and October 28, 2017, the Company recognized total stock-based compensation expense of $2,435 and $1,437, respectively. Compensation expense related to the Company's stock-based payment awards is recognized in selling, general, and administrative expenses in the condensed consolidated statements of operations. Employee Stock Plans As of November 3, 2018, the number of shares available for awards under the 2013 Performance Incentive Plan (the “2013 Plan”) was 303. As of November 3, 2018, there were 645 unvested stock awards outstanding under the 2013 Plan. Employee Stock Purchase Plan The Company also has an Employee Stock Purchase Plan (“ESPP”) that was approved by shareholders in fiscal year 2015, under which 800 shares of common stock have been authorized. Shares are issued under the ESPP twice yearly at the end of each offering period. For the 39 weeks ended November 3, 2018, 45 shares were issued under the ESPP and the number of shares available for issuance was 607. Nonvested Restricted Stock Awards During the 13 and 39 weeks ended November 3, 2018 and October 28, 2017, the Company did not issue any nonvested restricted stock awards to employees. The following table sets forth the rollforward of outstanding nonvested stock awards (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 108 $ 11.25 Grants — — Forfeitures 2 11.25 Vested 80 11.25 Balance at November 3, 2018 26 $ 11.25 Weighted average grant-date Shares fair value Balance at January 28, 2017 162 $ 11.25 Grants — — Forfeitures — — Vested 54 11.25 Balance at October 28, 2017 108 $ 11.25 Nonvested Performance-Based Stock Awards During the 13 weeks ended November 3, 2018, the Company did not issue any performance-based stock awards. During the 39 weeks ended November 3, 2018, the Company issued 163 nonvested performance-based stock awards to employees at a weighted average grant date fair value of $4.91 per share. The nonvested performance-based stock awards issued to employees vest over three years with one third vesting on each grant date anniversary. The number of shares issued was contingent on management achieving fiscal year 2018 performance targets for same store sales and gross margin. If minimum threshold performance targets are not achieved, no shares will vest. The maximum number of shares subject to the award is 326, and the “target” number of shares subject to the award is 163 as reported below. Following the end of the performance period (fiscal year 2018), the number of shares eligible to vest, based on actual performance, will be fixed and vesting will then be subject to each employee’s continued employment over the remaining service period. The issued shares estimate the most likely outcome of the performance conditions to be achieved for the performance period. If management’s assessment of the most likely outcome of the levels of performance conditions to be achieved changes, the number of granted shares will be revised accordingly. During the 13 and 39 weeks ended October 28, 2017, the Company did not issue any nonvested performance-based stock awards to employees. The following table sets forth the rollforward of outstanding nonvested performance-based stock awards (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 49 $ 11.25 Grants 163 4.91 Forfeitures 5 5.36 Vested 46 11.25 Balance at November 3, 2018 161 $ 5.15 Weighted average grant-date Shares fair value Balance at January 28, 2017 73 $ 11.25 Grants — — Forfeitures — — Vested 24 11.25 Balance at October 28, 2017 49 $ 11.25 Nonvested Stock Unit Awards During the 13 weeks ended November 3, 2018, the Company issued 3 nonvested stock units to employees of the Company at an average value of $5.56 per share. During the 39 weeks ended November 3, 2018, the Company issued 322 nonvested stock units to employees of the Company and independent members of the Board of Directors at an average value of $4.88 per share. During the 13 weeks ended October 28, 2017, the Company did not issue any nonvested stock units. During the 39 weeks ended October 28, 2017, the Company issued 456 nonvested stock units to employees of the Company and independent members of the Board of Directors at an average value of $5.09 per share. The shares issued to the independent members of the Board of Directors vest over 12 months with one twelfth vesting each month from the grant date. The shares issued to employees of the Company vest over a three year period with one third of the shares vesting on each grant date anniversary. The Company had no net share settlements in the 13 weeks ended November 3, 2018 and October 28, 2017. The following table sets forth the rollforward of outstanding nonvested stock units (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 419 $ 5.15 Grants 322 4.88 Forfeitures 8 4.91 Vested 279 5.23 Balance at November 3, 2018 454 $ 4.91 Weighted average grant-date Shares fair value Balance at January 28, 2017 301 $ 7.17 Grants 456 5.09 Forfeitures 1 7.06 Vested 323 6.97 Balance at October 28, 2017 433 $ 5.13 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 03, 2018 | |
Commitments and Contingencies. | |
Commitments and Contingencies | (10) Commitments and Contingencies Operating Leases The Company leases its retail store, office space and warehouse locations under non-cancelable operating leases. Rent expense under these leases totaled $13,974 and $12,632 for the 13 weeks ended November 3, 2018 and October 28, 2017, respectively. Rent expense under these leases totaled $40,448 and $36,225 for the 39 weeks ended November 3, 2018 and October 28, 2017, respectively. Legal Matters The Company is involved in various legal matters generally incidental to its business. After discussion with legal counsel, management is not aware of any matters for which the likelihood of a loss is probable and reasonably estimable and which could have a material impact on its consolidated financial condition, liquidity, or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 03, 2018 | |
Summary of Significant Accounting Policies | |
Revenue recognition accounting policy | Adoption of ASC Topic 606, “Revenue from Contracts with Customers” The Company adopted Accounting Standard Codification (“ASC”) Topic 606 on February 4, 2018, using the modified retrospective approach to all open contracts, with the cumulative effect of adopting the new standard being recognized in retained earnings at February 4, 2018. Therefore, the prior period comparative information has not been adjusted and continues to be reported under Topic 605. The adoption of Topic 606 resulted in an increase in prepaids and other assets of $1,054 for the recognition of the right of return assets; an increase in accrued expenses relating to the sales return liability of $1,054 for the recognition of the sales return liability on a gross basis; a decrease in accrued expenses of $3,521 relating to the breakage of loyalty rewards and gift cards in order to adjust the breakage pattern of the loyalty program and gift cards to match the usage; a decrease of $884 in deferred tax assets relating to the tax impact of the entries recorded for the gift card and loyalty program liabilities; and a decrease in accumulated deficit of $2,637 as a cumulative effect of the adoption. The largest driver of changes for the adoption of Topic 606 was the change in the method of estimating breakage for the Company’s outstanding gift cards and loyalty reward liabilities. Under Topic 605, this breakage was historically recorded when it was determined that the gift cards or loyalty reward points were not going to be redeemed, which was after two years for gift cards and 18 months for loyalty reward points. Under Topic 606, the breakage recognized for the loyalty reward program and gift cards is now estimated based off of historical breakage percentages, and is recognized in-line with the expected usage of the loyalty points and gift cards. The accounts that changed under the adoption of Topic 606 for the condensed consolidated balance sheet as of and for the 39 weeks ended November 3, 2018 have been outlined as follows: Condensed Consolidated Balance Sheet Changes As Reported Adjustments Balances without adoption of Topic 606 Prepaids expenses and other $ 12,092 $ (1,433) $ 10,659 Accrued expenses 55,664 2,088 57,752 Deferred income taxes 1,517 884 2,401 Accumulated deficit (17,070) (2,637) (19,707) Revenue recognition accounting policy The Company operates solely as an outdoor retailer, which includes both retail stores and an e-commerce platform, that offers a broad range of products in the United States and online. Generally, all revenues are recognized when control of the promised goods is transferred to customers, in an amount that reflects the consideration in exchange for those goods. Accordingly, the Company implicitly enters into a contract with customers to deliver merchandise inventory at the point of sale. Collectability is reasonably assured since the Company only extends immaterial credit purchases to certain municipalities. Substantially all of the Company’s revenue is for single performance obligations for the following distinct items: · Retail store sales · E-commerce sales · Gift cards and loyalty reward program For performance obligations related to retail store and e-commerce sales contracts, the Company typically transfers control, for retail stores, upon consummation of the sale when the product is paid for and taken by the customer and, for e-commerce sales, when the products are tendered for delivery to the common carrier. The transaction price for each contract is the stated price on the product, reduced by any stated discounts at that point in time. The Company does not engage in sales of products that attach a future material right which could result in a separate performance obligation for the purchase of goods in the future at a material discount. The implicit point-of-sale contract with the customer, as reflected in the transaction receipt, states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for the Company’s contracts is due in full upon delivery. The customer agrees to a stated price implicit in the contract that does not vary over the contract. The transaction price relative to sales subject to a right of return reflects the amount of estimated consideration to which the Company expects to be entitled. This amount of variable consideration included in the transaction price, and measurement of net sales, is included in net sales only to the extent that it is probable that there will be no significant reversal in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. The allowance for sales returns is estimated based upon historical experience and a provision for estimated returns is recorded as a reduction in sales in the relevant period. The estimated merchandise inventory cost related to the sales returns is recorded in prepaid expenses and other. The estimated refund liabilities are recorded in accrued expenses. If actual results in the future vary from the Company’s estimates, the Company adjusts these estimates, which would affect net sales and earnings in the period such variances become known. Contract liabilities are recognized primarily for gift card sales and our loyalty reward program. Cash received from the sale of gift cards is recorded as a contract liability in accrued expenses, and the Company recognizes revenue upon the customer’s redemption of the gift card. Gift card breakage is recognized as revenue in proportion to the pattern of customer redemptions by applying a historical breakage rate of 2.5% when no escheat liability to relevant jurisdictions exists. Based upon historical experience, gift cards are predominantly redeemed in the first two years following their issuance date. The Company does not sell or provide gift cards that carry expiration dates. ASC 606 requires the Company to allocate the transaction price between the goods and the loyalty reward points based on the relative stand alone selling price. The Company recognized revenue for the breakage of loyalty reward points as revenue in proportion to the pattern of customer redemption of the points by applying a historical breakage rate of 25% when no escheat liability to relevant jurisdictions exists. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue. Sales returns We estimate a reserve for sales returns and record the respective reserve amounts, including a right to return asset when a product is expected to be returned and resold. Historical experience of actual returns and customer return rights are the key factors used in determining the estimated sales returns. Contract Balances The following table provides information about right of return assets, contract liabilities, and sales return liabilities with customers as of November 3, 2018: November 3, 2018 Right of return assets, which are included in prepaid expenses and other $ 1,433 Estimated contract liabilities, net of breakage 15,681 Sales return liabilities, which are included in accrued expenses 2,155 For the 13 and 39 weeks ended November 3, 2018 the Company recognized approximately $147 and $652 in gift card breakage, respectively. For the 13 and 39 weeks ended November 3, 2018 the Company recognized approximately $327 and $880 in loyalty reward breakage, respectively. Gift card and loyalty reward breakage revenue for the 13 and 39 weeks ended November 3, 2018 reported under ASC 606 were not materially different from the amounts that would have been reported under the previous guidance of ASC 605. The Company will continue to monitor future quarters for materiality. The impact of these adjustments on the statement of cash flow for the period ended November 3, 2018 were recorded in cash used in operating activities. The current balance of the right of return assets is the expected amount of inventory to be returned that is expected to be resold. The current balance of the contract liabilities primarily relates to the gift card and loyalty reward program liabilities. The Company expects the revenue associated with these liabilities to be recognized in proportion to the pattern of customer redemptions over the next two years. The current balance of sales return liabilities is the expected amount of sales returns from sales that have occurred. Practical expedients and policy elections The Company applies the following practical expedients in its application for Topic 606: · The Company has elected to apply the practical expedient, relative to e-commerce sales, which allows an entity to account for shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for only one performance obligation, the sale of the product, at the shipping point (when the customer gains control). Revenue associated with shipping and handling is not material. The costs associated with fulfillment are recorded in costs of goods sold. · The Company has elected to apply the practical expedient, relative to sales tax collected, which allows an entity to exclude from its transaction price any amounts collected from customers for all sales (and other similar) taxes. Disaggregation of revenue from contracts with customers In the following table, revenue from contracts with customers is disaggregated by department. The percentage of net sales related to our departments for the 13 and 39 weeks ended November 3, 2018 and October 28, 2017, was approximately: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, Department Product Offerings 2018 2017 2018 2017 Camping Backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents and tools Clothing Camouflage, jackets, hats, outerwear, sportswear, technical gear and work wear Fishing Bait, electronics, fishing rods, flotation items, fly fishing, lines, lures, reels, tackle and small boats Footwear Hiking boots, socks, sport sandals, technical footwear, trail shoes, casual shoes, waders and work boots Hunting and Shooting Ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, reloading equipment and shooting gear Optics, Electronics, Accessories, and Other Gift items, GPS devices, knives, lighting, optics (e.g. binoculars), two-way radios, and license and background check revenue, net of revenue discounts Total |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Lease Accounting In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (“ASU 2016-02”). The standard amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. ASU 2016-02 will be effective beginning in the first quarter of fiscal year 2019. Early adoption of ASU 2016-02 is permitted. In July 2018, the FASB issued ASU 2018-11 which provided additional transition methods and a lessor practical expedient for separating lease and non-lease components. The Company plans to adopt the standard during the first quarter of fiscal year 2019. The new leases standard provides a modified retrospective transition approach or a date of initial application approach for adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. Management is currently evaluating the impact of adopting ASU 2016-02 on the Company’s consolidated financial statements, including which adoption method to apply and whether to elect the practical expedients outlined in the new standard. Currently all of the Company’s store and corporate locations are accounted for as operating leases, and therefore are not recorded on our balance sheet. The Company expects this adoption will result in a material increase in the assets and liabilities on the Company’s consolidated balance sheets. Once the Company adopts this new standard, it expects that, for the majority of its leases, the leases would include the amortization of the right-of-use asset and the recognition of interest expense based on the lessee’s incremental borrowing rate (or the rate implicit in the lease, if known) on the payment of the lease obligation. In preparation for the adoption of the guidance, the Company is in the process of implementing controls and system changes to enable the preparation of financial information. Intangible – Goodwill and Other In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. ASU 2017-04 is effective for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. Management believes ASU 2017-04 will have no impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies new (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Disaggregation of Revenue [Line Items] | |
Schedule of Revenue by Departments | November 3, 2018 Right of return assets, which are included in prepaid expenses and other $ 1,433 Estimated contract liabilities, net of breakage 15,681 Sales return liabilities, which are included in accrued expenses 2,155 |
Schedule of right of return assets, contract liabilities, and sales return liabilities with customers | Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, Department Product Offerings 2018 2017 2018 2017 Camping Backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents and tools Clothing Camouflage, jackets, hats, outerwear, sportswear, technical gear and work wear Fishing Bait, electronics, fishing rods, flotation items, fly fishing, lines, lures, reels, tackle and small boats Footwear Hiking boots, socks, sport sandals, technical footwear, trail shoes, casual shoes, waders and work boots Hunting and Shooting Ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, reloading equipment and shooting gear Optics, Electronics, Accessories, and Other Gift items, GPS devices, knives, lighting, optics (e.g. binoculars), two-way radios, and license and background check revenue, net of revenue discounts Total |
Accounting Standards Update 2014-09 | |
Disaggregation of Revenue [Line Items] | |
Schedule of Condensed Consolidated Balance Sheet Changes | Condensed Consolidated Balance Sheet Changes As Reported Adjustments Balances without adoption of Topic 606 Prepaids expenses and other $ 12,092 $ (1,433) $ 10,659 Accrued expenses 55,664 2,088 57,752 Deferred income taxes 1,517 884 2,401 Accumulated deficit (17,070) (2,637) (19,707) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Property and Equipment. | |
Schedule of Property and Equipment | Property and equipment as of November 3, 2018 and February 3, 2018 were as follows: November 3, February 3, 2018 2018 Furniture, fixtures, and equipment $ 69,896 $ 65,437 Leasehold improvements 91,268 84,345 Construction in progress 3,531 2,434 Total property and equipment, gross 164,696 152,216 Less accumulated depreciation and amortization (71,423) (58,181) Total property and equipment, net $ 93,273 $ 94,035 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Accrued Expenses | |
Components Accrued Expenses | Accrued expenses consisted of the following as of November 3, 2018 and February 3, 2018: November 3, February 3, 2018 2018 Book overdraft $ 15,368 $ 9,944 Unearned revenue 16,924 22,874 Accrued payroll and related expenses 9,637 8,004 Sales and use tax payable 4,761 3,277 Accrued construction costs 431 605 Other 8,543 5,898 Total Accrued Expenses $ 55,664 $ 50,602 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Long-Term Debt | |
Summary of Long-Term Debt | Long-term debt consisted of the following as of November 3, 2018 and February 3, 2018: November 3, February 3, 2018 2018 Prior Term Loan $ — $ 135,127 New Term loan 38,000 — Less discount — (678) Less debt issuance costs (389) (1,110) 37,611 133,339 Less current portion, net of discount and debt issuance costs (7,915) (990) Long-term portion $ 29,696 $ 132,349 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Earnings Per Share | |
Computation of Basic and Diluted Earnings Per Common Share | The following table sets forth the computation of basic and diluted income per common share: Thirteen Weeks Ended Thirty-Nine Weeks Ended November 3, October 28, November 3, October 28, 2018 2017 2018 2017 Net Income $ 12,398 $ 9,808 $ 13,121 $ 11,855 Weighted-average shares of common stock outstanding: Basic 42,938 42,576 42,854 42,464 Dilutive effect of common stock equivalents 156 35 83 37 Diluted 43,094 42,611 42,937 42,501 Basic earnings per share $ 0.29 $ 0.23 $ 0.31 $ 0.28 Diluted earnings per share $ 0.29 $ 0.23 $ 0.31 $ 0.28 Restricted stock units considered anti-dilutive and excluded in the calculation 7 222 49 233 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Nov. 03, 2018 | |
Stock-Based Compensation | |
Rollforward of Outstanding Nonvested Stock Awards | The following table sets forth the rollforward of outstanding nonvested stock awards (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 108 $ 11.25 Grants — — Forfeitures 2 11.25 Vested 80 11.25 Balance at November 3, 2018 26 $ 11.25 Weighted average grant-date Shares fair value Balance at January 28, 2017 162 $ 11.25 Grants — — Forfeitures — — Vested 54 11.25 Balance at October 28, 2017 108 $ 11.25 |
Rollforward of Outstanding Nonvested Performance-based Stock Awards | The following table sets forth the rollforward of outstanding nonvested performance-based stock awards (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 49 $ 11.25 Grants 163 4.91 Forfeitures 5 5.36 Vested 46 11.25 Balance at November 3, 2018 161 $ 5.15 Weighted average grant-date Shares fair value Balance at January 28, 2017 73 $ 11.25 Grants — — Forfeitures — — Vested 24 11.25 Balance at October 28, 2017 49 $ 11.25 |
Rollforward of Outstanding Nonvested Stock Units | The following table sets forth the rollforward of outstanding nonvested stock units (per share amounts are not in thousands): Weighted average grant-date Shares fair value Balance at February 3, 2018 419 $ 5.15 Grants 322 4.88 Forfeitures 8 4.91 Vested 279 5.23 Balance at November 3, 2018 454 $ 4.91 Weighted average grant-date Shares fair value Balance at January 28, 2017 301 $ 7.17 Grants 456 5.09 Forfeitures 1 7.06 Vested 323 6.97 Balance at October 28, 2017 433 $ 5.13 |
Description of Business and B_2
Description of Business and Basis of Presentation (Details) | 9 Months Ended |
Nov. 03, 2018storestatesegment | |
Description of Business and Basis of Presentation | |
Number of stores | store | 92 |
Number of states | state | 23 |
Number of reportable segments | segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 9 Months Ended |
Nov. 03, 2018USD ($) | |
Summary of Significant Accounting Policies | |
Accrued expenses on sales return liability | $ 1,054 |
Accrued expenses on breakage of loyalty rewards and gift cards | $ 3,521 |
Gift card redemption period | 2 years |
Loyalty reward redemption period | 18 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Condensed Consolidated Balance Sheet Changes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Nov. 03, 2018 | Feb. 03, 2018 | |
Condensed Consolidated Balance Sheet Changes | ||
Prepaid expenses and other | $ 12,092 | $ 8,073 |
Prepaid expenses and other | (12,092) | (8,073) |
Accrued expenses | 55,664 | 50,602 |
Deferred income taxes | 1,517 | 4,595 |
Accumulated deficit | $ (17,070) | $ (32,825) |
Gift card historical breakage (as a percent) | 2.50% | |
Gift card escheat liability | $ 0 | |
Breakage of loyalty reward (as a percent) | 25.00% | |
Loyalty reward escheat liability | $ 0 | |
Adjustments | ||
Condensed Consolidated Balance Sheet Changes | ||
Prepaid expenses and other | 1,433 | |
Prepaid expenses and other | (1,433) | |
Accrued expenses | 2,088 | |
Deferred income taxes | 884 | |
Accumulated deficit | (2,637) | |
Balances without adoption of Topic 606 | ||
Condensed Consolidated Balance Sheet Changes | ||
Prepaid expenses and other | 10,659 | |
Prepaid expenses and other | (10,659) | |
Accrued expenses | 57,752 | |
Deferred income taxes | 2,401 | |
Accumulated deficit | $ (19,707) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Contract Balances (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Nov. 03, 2018USD ($) | Nov. 03, 2018USD ($) | |
Summary of Significant Accounting Policies | ||
Right of return assets, which are included in prepaid expenses and other | $ 1,433 | $ 1,433 |
Estimated contract liabilities, net of breakage | 15,681 | 15,681 |
Sales return liabilities, which are included in accrued expenses | 2,155 | 2,155 |
Gift breakage income | 147 | 652 |
Recognized customer loyalty program breakage income | $ 327 | $ 880 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Disaggregation of revenue from contracts with customers (Details) | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 100.00% | 100.00% | 100.00% | 100.00% |
Camping | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 14.50% | 15.70% | 15.60% | 16.50% |
Clothing | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 9.80% | 10.10% | 8.20% | 8.40% |
Fishing | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 8.60% | 9.00% | 12.30% | 12.20% |
Footwear | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 7.70% | 7.40% | 7.30% | 7.30% |
Hunting and Shooting | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 48.70% | 47.30% | 47.90% | 46.70% |
Optics, Electronics, Accessories, and Other | ||||
Disaggregation of revenue from contracts with customers | ||||
Net sales (as a percent) | 10.60% | 10.50% | 8.70% | 8.90% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 164,696 | $ 152,216 |
Less accumulated depreciation and amortization | (71,423) | (58,181) |
Total property and equipment, net | 93,273 | 94,035 |
Furniture, fixtures, and equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 69,896 | 65,437 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | 91,268 | 84,345 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment, gross | $ 3,531 | $ 2,434 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
Accrued Expenses | ||
Book overdraft | $ 15,368 | $ 9,944 |
Unearned revenue | 16,924 | 22,874 |
Accrued payroll and related expenses | 9,637 | 8,004 |
Sales and use tax payable | 4,761 | 3,277 |
Accrued construction costs | 431 | 605 |
Other | 8,543 | 5,898 |
Total Accrued Expenses | $ 55,664 | $ 50,602 |
Revolving Line Of Credit (Detai
Revolving Line Of Credit (Details) - USD ($) $ in Thousands | May 23, 2018 | Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | May 22, 2018 | Feb. 03, 2018 |
Line Of Credit Facility [Line Items] | |||||||
Capitalization of fees paid | $ 1,331 | ||||||
Line of credit facility, amount outstanding | 135,400 | ||||||
Amortization of deferred financing fees | $ 21 | $ 99 | $ 1,152 | $ 269 | |||
Wells Fargo Senior Secured Revolving Credit Facility | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 250,000 | $ 150,000 | |||||
Line of credit facility, amount outstanding | 190,855 | 190,855 | $ 66,621 | ||||
Amounts in depository under lock-box arrangements | 9,289 | $ 9,289 | 6,629 | ||||
Revolving credit facility, covenant term | The Amended Credit Agreement also requires the Company to maintain a minimum availability at all times of not less than 10% of the gross borrowing base | ||||||
Line of credit , maturity date | May 23, 2023 | ||||||
Deferred financing fees outstanding | 1,148 | $ 1,148 | $ 393 | ||||
Amortization of deferred financing fees | 67 | $ 26 | $ 129 | $ 106 | |||
Wells Fargo Senior Secured Revolving Credit Facility | Minimum | |||||||
Line Of Credit Facility [Line Items] | |||||||
Line of credit facility gross borrowing base percentage | 10.00% | ||||||
New Term Loan | |||||||
Line Of Credit Facility [Line Items] | |||||||
New term loan | $ 40,000 | ||||||
Wells Fargo Stand-by Commercial Letters of Credit | |||||||
Line Of Credit Facility [Line Items] | |||||||
Net borrowing available under revolving line of credit | $ 1,505 | $ 1,505 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Nov. 03, 2018 | Feb. 03, 2018 |
Less current portion, net of discount and debt issuance costs | $ (7,915) | $ (990) |
Long-term portion | 29,696 | 132,349 |
Prior Term Loan | ||
Term loan | 135,127 | |
Less discount | (678) | |
Less debt issuance costs | (1,110) | |
Long-term debt | 133,339 | |
Less current portion, net of discount and debt issuance costs | (990) | |
Long-term portion | $ 132,349 | |
New Term Loan | ||
Term loan | 38,000 | |
Less discount | 0 | |
Less debt issuance costs | (389) | |
Long-term debt | 37,611 | |
Less current portion, net of discount and debt issuance costs | (7,915) | |
Long-term portion | $ 29,696 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) $ in Thousands | May 23, 2018 | Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 |
Debt Instrument [Line Items] | ||||||
Line of credit facility, amount outstanding | $ 135,400 | |||||
Repayment of term loan | $ 137,127 | $ 1,200 | ||||
Amortization of discount | $ 0 | $ 59 | 678 | 159 | ||
Amortization of debt issuance costs | 21 | $ 99 | 1,152 | $ 269 | ||
New Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument issuance price, percentage of aggregate principal amount | 100.00% | |||||
New term loan | $ 40,000 | |||||
Repayment of term loan | 2,000 | |||||
Term loan | 38,000 | 38,000 | ||||
Debt instrument discount at issuance | 0 | 0 | ||||
Unamortized debt issuance costs | $ 389 | 389 | ||||
Prior Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Repayment of term loan | $ 134,700 | |||||
Term loan | $ 135,127 | |||||
Debt instrument discount at issuance | 678 | |||||
Unamortized debt issuance costs | $ 1,110 | |||||
Extinguishment of the Term Loan | $ 1,617 | |||||
LIBOR | New Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Term loan interest rate (as a percent) | 5.75% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Dec. 31, 2017 | |
Income Taxes | |||||
Income tax expense | $ 2,480 | $ 6,218 | $ 3,406 | $ 8,053 | |
Estimated annual effective tax rate | 16.70% | 38.80% | 20.60% | 40.50% | |
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Earnings Per Share | ||||
Net Income | $ 12,398 | $ 9,808 | $ 13,121 | $ 11,855 |
Weighted-average shares of common stock outstanding: | ||||
Basic | 42,938 | 42,576 | 42,854 | 42,464 |
Dilutive effect of common stock equivalents | 156 | 35 | 83 | 37 |
Diluted | 43,094 | 42,611 | 42,937 | 42,501 |
Basic earnings per share | $ 0.29 | $ 0.23 | $ 0.31 | $ 0.28 |
Diluted earnings per share | $ 0.29 | $ 0.23 | $ 0.31 | $ 0.28 |
Restricted stock units considered anti-dilutive and excluded in the calculation | 7 | 222 | 49 | 233 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | Feb. 03, 2018 | Jan. 28, 2017 | Jan. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 2,435 | $ 1,437 | |||||
Net share settlements | 0 | 0 | |||||
Nonvested Restricted Stock Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of nonvested stock units | 0 | 0 | 0 | 0 | |||
Nonvested stock units outstanding, weighted average grant date fair value per share | $ 11.25 | $ 11.25 | $ 11.25 | $ 11.25 | $ 11.25 | $ 11.25 | |
Nonvested Performance-Based Stock Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of nonvested stock units | 0 | 163 | 0 | ||||
Nonvested stock issued, weighted average grant date fair value per share | $ 4.91 | ||||||
Vesting period | 3 years | ||||||
Vesting percentage | 33.33% | ||||||
Maximum number of shares subject to award | 326 | 326 | |||||
Nonvested stock units outstanding, weighted average grant date fair value per share | $ 5.15 | $ 11.25 | $ 5.15 | $ 11.25 | 11.25 | 11.25 | |
Target number of shares subject to award | 163 | ||||||
Nonvested Stock Unit Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of nonvested stock units | 322 | 456 | |||||
Nonvested stock issued, weighted average grant date fair value per share | $ 4.88 | $ 5.09 | |||||
Nonvested stock units outstanding, weighted average grant date fair value per share | $ 4.91 | $ 5.13 | $ 4.91 | $ 5.13 | $ 5.15 | $ 7.17 | |
Employees | Nonvested Stock Unit Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of nonvested stock units | 3 | 456 | |||||
Nonvested stock issued, weighted average grant date fair value per share | $ 5.56 | $ 5.09 | |||||
Vesting period | 3 years | ||||||
Vesting percentage | 33.33% | ||||||
Board Of Directors | Nonvested Stock Unit Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Vesting period | 12 months | ||||||
Vesting percentage | 8.33% | ||||||
Employees And Board Of Directors | Nonvested Stock Unit Awards | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Issuance of nonvested stock units | 322 | ||||||
Nonvested stock issued, weighted average grant date fair value per share | $ 4.88 | ||||||
Employee Stock Plans | 2013 Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for awards | 303 | 303 | |||||
Number of awards outstanding | 645 | 645 | |||||
Employee Stock Purchase Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of shares available for awards | 607 | 607 | |||||
Maximum number of shares subject to award | 800 | ||||||
Stock Issued During Period Shares Employee Stock Purchase Plans | 45 | ||||||
Selling, General and Administrative Expenses | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Stock-based compensation | $ 366 | $ 386 | $ 2,435 | $ 1,437 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Nonvested Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Beginning balance, Shares | 108 | 162 | ||
Grants, Shares | 0 | 0 | 0 | 0 |
Forfeitures, Shares | 2 | |||
Vested, Shares | 80 | 54 | ||
Ending balance, Shares | 26 | 108 | 26 | 108 |
Beginning balance, Weighted average grant-date fair value | $ 11.25 | $ 11.25 | ||
Forfeitures, Weighted average grant-date fair value | 11.25 | |||
Vested, Weighted average grant-date fair value | 11.25 | 11.25 | ||
Ending balance, Weighted average grant-date fair value | $ 11.25 | $ 11.25 | $ 11.25 | $ 11.25 |
Nonvested Performance-Based Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Beginning balance, Shares | 49 | 73 | ||
Grants, Shares | 0 | 163 | 0 | |
Forfeitures, Shares | 5 | |||
Vested, Shares | 46 | 24 | ||
Ending balance, Shares | 161 | 49 | 161 | 49 |
Beginning balance, Weighted average grant-date fair value | $ 11.25 | $ 11.25 | ||
Grants, Weighted average grant-date fair value | 4.91 | |||
Forfeitures, Weighted average grant-date fair value | 5.36 | |||
Vested, Weighted average grant-date fair value | 11.25 | 11.25 | ||
Ending balance, Weighted average grant-date fair value | $ 5.15 | $ 11.25 | $ 5.15 | $ 11.25 |
Nonvested Stock Unit Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Beginning balance, Shares | 419 | 301 | ||
Grants, Shares | 322 | 456 | ||
Forfeitures, Shares | 8 | 1 | ||
Vested, Shares | 279 | 323 | ||
Ending balance, Shares | 454 | 433 | 454 | 433 |
Beginning balance, Weighted average grant-date fair value | $ 5.15 | $ 7.17 | ||
Grants, Weighted average grant-date fair value | 4.88 | 5.09 | ||
Forfeitures, Weighted average grant-date fair value | 4.91 | 7.06 | ||
Vested, Weighted average grant-date fair value | 5.23 | 6.97 | ||
Ending balance, Weighted average grant-date fair value | $ 4.91 | $ 5.13 | $ 4.91 | $ 5.13 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Nov. 03, 2018 | Oct. 28, 2017 | Nov. 03, 2018 | Oct. 28, 2017 | |
Operating Leases | ||||
Rent expense | $ 13,974 | $ 12,632 | $ 40,448 | $ 36,225 |