American Outdoor Brands Corp., parent of Smith & Wesson, on Thursday, reported an earnings per share loss of 4 cents for the fiscal first quarter ended July 31, missing Wall Street’s estimates by 3 cents. Revenue declined 10.9 percent to $123.7 million for the quarter.

First Quarter Fiscal 2020 Financial Highlights

  • Quarterly net sales were $123.7 million compared with $138.8 million for the first quarter last year, a decrease of 10.9%.
  • Gross margin for the quarter was 38.7% compared with 37.8% for the comparable quarter last year.
  • Quarterly GAAP net loss was $2.1 million, or $(0.04) per diluted share, compared with net income of $7.6 million, or $0.14 per diluted share, for the comparable quarter last year.
  • Quarterly non-GAAP net income was $1.7 million, or $0.03 per diluted share, compared with $11.7 million, or $0.21 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments to net income excludes a number of acquisition-related costs and other costs. For a detailed reconciliation, see the schedules that follow in this release.
  • Quarterly non-GAAP Adjusted EBITDAS was $17.5 million, or 14.1% of net sales, compared with $28.4 million, or 20.4% of net sales, for the comparable quarter last year.

James Debney, American Outdoor Brands Corporation president and CEO, commented, “Our results for the first quarter reflected our ability to remain focused on executing our strategic plan while addressing the challenges of ongoing softness in the firearms market. During the quarter, we achieved significant milestones at our new Missouri Campus, which houses our Logistics & Customer Services Division and Outdoor Products & Accessories Division, and serves as the centralized logistics, warehousing, and distribution operation for our entire business. Those milestones included the successful transfer of our entire firearms shipping operations to the new facility, as well as the consolidation and subsequent shuttering of our Jacksonville, Florida business. Our Missouri Campus is an important strategic initiative that will ultimately allow us to lower our costs, better serve our customers, and achieve our objective to be the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast.”

Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, commented, “At the end of the quarter, our balance sheet remained strong with cash of $30.7 million and total net borrowings of $149.1 million dollars. That, combined with our twelve-month trailing EBITDAS, translates to a net leverage ratio of just 1.5.”

Photo courtesy Outdoor Life