Income from operations increased to $16.8 million from $12.3 million in the second quarter of fiscal 2014.
Adjusted income from operations, which excludes the reversal of an accrual related to a litigation in the second quarter of 2015 was $12.8 million as compared to $12.3 million in the second quarter of fiscal 2014.
The company opened four new stores in the second quarter of fiscal 2015 and ended the quarter with 61 stores in 19 states, a unit increase of 13.0 percent from the end of the second quarter of fiscal 2014.
Interest expense decreased to $3.4 million from $4.1 million in the second quarter of fiscal 2014.
Net income was $8.2 million compared to $5.1 million in the second quarter of fiscal 2014. Adjusted net income, which excludes the reversal of an accrual related to a litigation matter, net of taxes, was $5.7 million during the second quarter of fiscal 2015 as compared to $5.1 million in the corresponding period of fiscal 2014.
Diluted earnings per share were 19 cents compared to diluted earnings per share of 12 cents in the second quarter of fiscal 2014, far exceeding the 13 cents expected by analysts tracked by Zacks Investment Research. Adjusted diluted earnings per share, were 14 cents compared to adjusted diluted earnings per share of 12 cents in the second quarter of fiscal 2014.
Adjusted EBITDA was $17.3 million compared to $16.0 million in the second quarter of fiscal 2014.
CEO commentary
“We are pleased with our second quarter results which came in better than our expectations, highlighted by increased net sales, positive same store sales and gross margin expansion, despite a still promotional industry and the continued impact from competition,” said John Schaefer, president and chief executive officer.
“As we enter the fall hunting season, we remain encouraged by the improving industry trends and indicators that suggest that we are near normalized industry dynamics in the firearm and ammunition categories. We are excited about our refined small store format that allows us to profitably service even smaller MSA's, and we remain focused on our key priorities. These include continued store growth given the significant white space opportunity, expansion of our loyalty program, enhancement of operating margins and maintaining best in class customer service. We believe we are well positioned for the second half of the year and as a result, we are reiterating our full year 2015 guidance.”
Third Quarter and Fiscal 2015 Outlook
For the third quarter of fiscal 2015, net sales are expected to be in the range of $198.0 million to $203.0 million based on same store sales in the range of flat to 2.0 percent. Net income is expected to be in the range of $9.2 million to $10.0 million, with diluted earnings per share of 22-to-24 cents on a weighted average of approximately 42.3 million estimated common shares outstanding.
For fiscal 2015, net sales are expected to be in the range of $720.0 million to $740.0 million based on opening nine new stores for the full year and same store sales in the range of (1.0 percent) to 2.0 percent. Net income is expected to be in the range of $23.9 million to $26.7 million, with diluted earnings per share of $0.56 to $0.63 on a weighted average of approximately 42.3 million estimated common shares outstanding.
