Smith & Wesson Brands Inc. reported sales rose 67.3 percent in the fourth quarter and 100.0 percent in the year.
Fourth Quarter Fiscal 2021 Financial Highlights
- Quarterly net sales were $322.9 million compared with $193.0 million for the comparable quarter last year, an increase of 67.3 percent.
- Gross margin for the quarter was 45.1 percent compared with 32.2 percent for the comparable quarter last year.
- Quarterly GAAP net income was a record $89.2 million, or $1.70 per diluted share, compared with $20.9 million, or $0.38 per diluted share, for the comparable quarter last year.
- Quarterly non-GAAP net income was $89.6 million, or $1.71 per diluted share, compared with $27.5 million, or $0.50 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the spin-off of the outdoor products and accessories business, COVID-19 related expenses, and other costs.
- Quarterly non-GAAP Adjusted EBITDAS was $125.6 million, or 38.9 percent of net sales, compared with $51.6 million, or 26.7 percent of net sales, for the comparable quarter last year.
Full-year Fiscal 2021 Financial Highlights
- Full-year net sales were $1.1 billion compared with $529.6 million for the prior year, an increase of 100 percent.
- Gross margin of 42.4 percent compared with 31.3 percent for the prior year.
- Full-year GAAP net income was $243.6 million, or $4.40 per diluted share, compared with GAAP net income of $27.7 million, or $0.50 per diluted share, for the prior year.
- Full-year non-GAAP net income was $251.5 million, or $4.54 per diluted share, compared with $32.1 million, or $0.58 per diluted share, for the prior year. GAAP to non-GAAP adjustments for income exclude costs related to the spin-off of the outdoor products and accessories business, COVID-19-related expenses and other costs.
- Full-year non-GAAP Adjusted EBITDAS was $366.6 million, or 34.6 percent of net sales, compared with $92.7 million, or 17.5 percent of net sales, for the prior year.
Mark Smith, president and chief executive officer, commented, “The results of the past year, in spite of the unthinkable challenges that we faced as a nation and as a company, are a tremendous testament to the resolve of our dedicated employees, the power of the Smith & Wesson brand and the strength of the partnerships we have with our customers. Our employees more than doubled the prior year’s sales, passed a milestone of $1 billion in revenue and, by every financial and operating metric, have delivered the most successful year in the 169-year history of the company. But most importantly, we have set a rock-solid foundation for the long-term success of the company with astounding market share growth.
During the past fiscal year, the U.S. firearms market experienced record growth of 42 percent, meanwhile, shipments from Smith & Wesson far surpassed the industry, growing by 70 percent. Strong consumer preference for our products combined with our ability to rapidly react to the increased demand has placed us in a clear leadership position as we enter into our first full fiscal year as a standalone pure-play firearms company.”
Deana McPherson, executive vice president and chief financial officer, commented, “The hard work and dedication of all of our employees, combined with record-breaking demand for our high-quality products drove equally record-breaking financial results for the year, including record revenue, net income, earnings per share, and cash generation. We began our first year as a pure-play firearm company with clear strategic priorities, and we have delivered on our strategy. During fiscal 2021, we invested in our business and our people, we repaid all of our bank debt, we repurchased over 10 percent of our outstanding common stock, and we began paying our stockholders a quarterly dividend for the first time in company history. Continuing with our capital allocation strategy, I am pleased to announce that our Board has authorized a new $50 million share repurchase program as well as a 60 percent increase in our quarterly dividend to 8 cents per share. This quarter’s dividend will be paid to stockholders of record on July 1 with payment to be made on July 6.”
Photo courtesy Smith & Wesson