Sportsman’s Warehouse Comps Decline Eases in Fiscal First Quarter

Sportsman's Warehouse Holdings Inc. reported net sales increased by 9.1 percent in the 13 week period ended May 2 compared with the year earlier quarter as it comped against more modest firearms sales.

The Utah-based hunting and fishing retailer reported same store sales decreased by 0.7 percent.

“We…remain encouraged by indicators that suggest normalized industry dynamics in the firearm and ammunition categories are not far off,” said John Schaefer, President and Chief Executive Officer.

Income from operations increased to $1.2 million from a $0.2 million loss in the first quarter of fiscal 2014. Adjusted income from operations, which excludes expenses related to bonuses paid as a result of the successful completion of our initial public offering (IPO) in fiscal year 2014, was $1.2 million as compared to $2.0 million in the first quarter of fiscal 2014.
 
The company ended the quarter with 57 stores in 18 states, a unit increase of 14.0 percent from the end of the first quarter of fiscal 2014.
 
Interest expense decreased $1.8 million to $3.5 million from $5.3 million in the first quarter of fiscal 2014.
 
Net loss was $1.4 million compared to $3.4 million in the first quarter of fiscal 2014. Adjusted net loss, which excludes expenses related to bonuses paid as a result of the successful completion of our IPO in fiscal year 2014, was $1.4 million as compared to $2.0 million in the first quarter of fiscal 2014.
 
Diluted loss per share was $0.03 compared to diluted loss per share of $0.10 in the first quarter of fiscal 2014.  Adjusted diluted loss per share was $0.03 compared to adjusted diluted loss per share of $0.05 in the first quarter of fiscal 2014.
Adjusted EBITDA was $5.4 million compared to $6.8 million in the first quarter of fiscal 2014.

“Fiscal 2015 is off to a good start with results that came in at the high end of our guidance ranges on both the top and bottom line,” Schaefer said. “Looking at the remainder of the year, we remain focused on our strategic growth initiatives and key priorities including capitalizing on the significant white space opportunity for new stores, maximizing the potential of our loyalty program, continuing to emphasize our best-in-class customer service and enhancing operating margins through increased sales of our private label products.”

Balance sheet highlights
Total liquidity (cash plus $61.9 million of availability on revolving credit facility): $63.9 million
 
Total debt: $210.0 million, consisting of $52.3 million outstanding under our revolving credit facility and $157.7 million outstanding under our term loans, net of unamortized discount.

Second quarter and Fiscal 2015 outlook:
For the second quarter of fiscal 2015, net sales are expected to be in the range of $167.0 million to $172.0 million based on same store sales in the range of (1.0 percent) to 1.0 percent. Net income is expected to be in the range of $4.8 million to $5.6 million, with diluted earnings per share of $0.11 to $0.13 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.