Sportsman's Warehouse Holdings Inc. reported same store sales decreased by 5.3 percent in the fourth quarter, compared with a 6.2 percent decline in the prior quarter and an 8.4 percent decline for the full year. The Utah-based retailer forecast same-store sales will grow 1-to-2 percent in 2015 as it begins comping against lower firearms sales.
Sportsman's Warehouse said net sales increased by 5.6 percent to $185.6 million in the fourth quarter ended Jan. 31 compared with $175.7 million in the fourth quarter of fiscal 2013. Same store sales decreased by 5.3 percent. The company ended the quarter with 55 stores in 18 states, a unit
increase of 17.0 percent from the end of the fourth quarter of fiscal
2013.
Income from operations decreased to $14.1 million from $16.4 million in the fourth quarter of fiscal 2013. Adjusted income from operations, which excludes an accrual with respect to a litigation matter, was $18.1 million as compared to $16.4 million in 2013, an increase of 10.4 percent.
Interest expense increased to $9.0 million from $5.6 million in the fourth quarter of fiscal 2013. Excluding the $5.7 million in refinance related costs incurred during the fourth quarter of fiscal 2014, interest expense decreased by 41.1 percent compared to the fourth quarter of fiscal year 2013 to $3.3 million.
Net income was $3.2 million compared to $7.4 million in the fourth quarter of fiscal 2013. Adjusted net income, which excludes an accrual with respect to a litigation matter and expenses related to refinancing our term loan in the fourth quarter of 2014, net of taxes, was $9.1 million compared to adjusted net income of $7.4 million for the fourth quarter of fiscal 2013.
Diluted earnings per share was $0.08 compared to diluted earnings per share of $0.22 in the fourth quarter of fiscal 2013. Adjusted diluted earnings per share, was $0.22 compared to adjusted diluted earnings per share of $0.18 in the fourth quarter of fiscal 2013.
Adjusted EBITDA was $21.6 million compared to $19.3 million in the fourth quarter of fiscal 2013.
“We are very pleased with our performance in fiscal 2014, as we grew our store base by 17.0 percent with the addition of eight new stores, increased sales by 2.6 percent and met each of our financial performance objectives despite heightened competition in some of our larger markets and continued industry headwinds that impacted the firearms and ammunition categories,” said John Schaefer, President and Chief Executive Officer. “We also executed on our strategic goals by finalizing our store within a store program in the clothing area, making significant strides with our private label initiatives and continuing to develop our customer loyalty program. In addition, we also successfully refined and implemented a smaller prototype that allows us to profitably service smaller Metropolitan Statistical Areas.”
“As we begin fiscal 2015, we remain focused on our strategic initiatives and continue to see abundant white space and significant share opportunity to be captured within the outdoor sporting goods market. We believe we are well positioned to capitalize on this opportunity given our distinguishing attributes of high service levels, everyday value and local shopping convenience.”
Full year results
Net sales increased by 2.6 percent to $660.0 million from $643.2 million in fiscal 2013. Same store sales decreased by 8.4 percent, primarily as a result of the decline in demand for firearms and ammunition.
Income from operations decreased to $44.9 million from $60.0 million in fiscal 2013. 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 the first quarter of fiscal 2014 and an accrual with respect to a litigation matter , was $51.1 million as compared to $60.0 million in 2013.
The company opened eight new stores in fiscal 2014.
Interest expense decreased to $22.5 million from $25.4 million in fiscal 2013.
Net income was $13.8 million compared to $21.8 million in fiscal 2013. Adjusted net income, which excludes expenses related to bonuses paid in connection with our IPO in the first quarter of 2014, net of taxes, an accrual with respect to a litigation matter, net of taxes and expenses related to the refinancing of our term loan in both 2014 and 2013, net of taxes , was $21.1 million compared to adjusted net income of $26.8 million in fiscal 2013.
Diluted earnings per share was $0.34 compared to diluted earnings per share of $0.66 in fiscal 2013. Adjusted diluted earnings per share , was $0.50 compared to adjusted diluted earnings per share of $0.64 in fiscal 2013.
Adjusted EBITDA was $66.3 million compared to $70.7 million in fiscal 2013 .
For the fifty-two weeks ended Jan. 31, 2015, Sportmans's Warehouse reported:
First Quarter and Fiscal 2015 outlook
For the first quarter of fiscal 2015, net sales are expected to be in the range of $140.0 million to $145.0 million based on same store sales in the range of 0-to-3 percent. Net loss is expected to be in the range of $1.8 million to $1.3 million, with diluted loss per share of $0.04 to $0.03 on a weighted average of approximately 42.0 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-to-2 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 approximately 42.3 million estimated weighted average common shares outstanding.
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SPORTSMAN'S WAREHOUSE HOLDINGS, INC. |
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Condensed Consolidated Statements of Income (Unaudited) |
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(in thousands, except per share data) |
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For the Thirteen Weeks Ended |
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For the Fiscal Year Ended |
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% of net |
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% of net |
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% of net |
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% of net |
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Net |
$ 185,578 |
100.0% |
$ 175,727 |
100.0% |
$ 660,003 |
100.0% |
$ 643,163 |
100.0% |
|
Cost |
123,977 |
66.8% |
118,843 |
67.6% |
444,796 |
67.4% |
435,933 |
67.8% |
|
Gross |
61,601 |
33.2% |
56,884 |
32.4% |
215,207 |
32.6% |
207,230 |
32.2% |
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Operating |
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Selling, |
47,456 |
25.6% |
40,498 |
23.0% |
170,315 |
25.8% |
147,140 |
22.9% |
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Bankruptcy |
— |
0.0% |
— |
0.0% |
— |
0.0% |
55 |
0.0% |
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|
47,456 |
25.6% |
40,498 |
23.0% |
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