2014 Q2 Form 10-K Financial Statement

#000119312514242483 Filed on June 19, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2014 Q1 2014
Revenue $170.4M $145.9M $626.6M
YoY Change -4.64% 7.07% 6.66%
Cost Of Revenue $100.7M $87.23M $367.5M
YoY Change -8.62% 1.07% -0.52%
Gross Profit $69.74M $58.65M $259.1M
YoY Change 1.9% 17.46% 18.82%
Gross Profit Margin 40.92% 40.2% 41.35%
Selling, General & Admin $25.10M $26.08M $102.5M
YoY Change 24.26% 24.57% 27.37%
% of Gross Profit 35.99% 44.46% 39.55%
Research & Development $1.500M $1.456M $5.648M
YoY Change 7.14% 52.94% 17.91%
% of Gross Profit 2.15% 2.48% 2.18%
Depreciation & Amortization $5.600M $4.900M $21.70M
YoY Change 19.15% 25.64% 29.73%
% of Gross Profit 8.03% 8.35% 8.38%
Operating Expenses $26.60M $27.53M $108.1M
YoY Change 22.58% 25.8% 26.84%
Operating Profit $43.14M $31.12M $151.0M
YoY Change -7.7% 10.95% 13.67%
Interest Expense -$1.800M $1.771M $12.26M
YoY Change 63.64% 42.82% 112.09%
% of Operating Profit -4.17% 5.69% 8.12%
Other Income/Expense, Net -$2.200M -$1.744M -$14.27M
YoY Change 46.31% 189.49%
Pretax Income $39.10M $29.38M $136.7M
YoY Change -14.44% 9.38% 6.89%
Income Tax $14.20M $9.319M $48.10M
% Of Pretax Income 36.32% 31.72% 35.18%
Net Earnings $25.06M $20.79M $89.31M
YoY Change -0.44% 42.6% 13.46%
Net Earnings / Revenue 14.7% 14.25% 14.25%
Basic Earnings Per Share $0.45 $0.37 $1.52
Diluted Earnings Per Share $0.44 $0.36 $1.49
COMMON SHARES
Basic Shares Outstanding 55.18M shares 55.58M shares 58.67M
Diluted Shares Outstanding 57.02M shares 60.11M

Balance Sheet

Concept 2014 Q2 2014 Q1 2014
SHORT-TERM ASSETS
Cash & Short-Term Investments $68.90M $45.30M $68.90M
YoY Change -29.04% -22.83% -29.04%
Cash & Equivalents $68.86M $45.29M $68.90M
Short-Term Investments
Other Short-Term Assets $23.10M $18.80M $23.10M
YoY Change 14.36% -13.76% 14.36%
Inventory $86.74M $86.81M $86.70M
Prepaid Expenses
Receivables $55.89M $52.66M $55.90M
Other Receivables $4.600M $8.600M $4.600M
Total Short-Term Assets $239.2M $212.2M $239.2M
YoY Change 4.18% 9.2% 4.18%
LONG-TERM ASSETS
Property, Plant & Equipment $120.4M $108.7M $120.4M
YoY Change 39.43% 39.76% 39.35%
Goodwill
YoY Change
Intangibles $3.425M $3.511M
YoY Change -13.62% -13.84%
Long-Term Investments
YoY Change
Other Assets $18.47M $21.66M $16.20M
YoY Change 160.98% 306.08% 237.5%
Total Long-Term Assets $142.3M $133.9M $142.3M
YoY Change 46.1% 53.54% 46.1%
TOTAL ASSETS
Total Short-Term Assets $239.2M $212.2M $239.2M
Total Long-Term Assets $142.3M $133.9M $142.3M
Total Assets $381.5M $346.1M $381.5M
YoY Change 16.67% 22.93% 16.67%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $37.69M $45.38M $37.70M
YoY Change 20.72% 86.15% 20.83%
Accrued Expenses $16.05M $10.83M $49.50M
YoY Change 0.11% -71.8% 8.55%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $800.0K
YoY Change 100.0%
Total Short-Term Liabilities $92.54M $88.22M $92.50M
YoY Change 12.05% 29.64% 11.99%
LONG-TERM LIABILITIES
Long-Term Debt $100.0M $100.0M $100.0M
YoY Change 129.36% 129.36% 129.36%
Other Long-Term Liabilities $10.72M $11.10M $10.70M
YoY Change -8.19% 2.94% -8.55%
Total Long-Term Liabilities $10.72M $11.10M $110.7M
YoY Change -8.19% 2.94% 100.18%
TOTAL LIABILITIES
Total Short-Term Liabilities $92.54M $88.22M $92.50M
Total Long-Term Liabilities $10.72M $11.10M $110.7M
Total Liabilities $214.7M $207.2M $214.7M
YoY Change 47.35% 63.23% 47.36%
SHAREHOLDERS EQUITY
Retained Earnings $97.74M $72.68M
YoY Change 1058.87% -534.4%
Common Stock $211.3M $208.5M
YoY Change 6.08% 5.45%
Preferred Stock
YoY Change
Treasury Stock (at cost) $142.3M $142.3M
YoY Change 439.03% 439.03%
Treasury Stock Shares $13.46M 13.46M shares
Shareholders Equity $166.8M $138.9M $166.8M
YoY Change
Total Liabilities & Shareholders Equity $381.5M $346.1M $381.5M
YoY Change 16.67% 22.93% 16.67%

Cashflow Statement

Concept 2014 Q2 2014 Q1 2014
OPERATING ACTIVITIES
Net Income $25.06M $20.79M $89.31M
YoY Change -0.44% 42.6% 13.46%
Depreciation, Depletion And Amortization $5.600M $4.900M $21.70M
YoY Change 19.15% 25.64% 29.73%
Cash From Operating Activities $36.00M $30.20M $90.21M
YoY Change -29.82% -8.48% -8.05%
INVESTING ACTIVITIES
Capital Expenditures -$14.00M -$22.60M $53.28M
YoY Change 6.87% 80.8% 28.64%
Acquisitions
YoY Change
Other Investing Activities $0.00 $100.0K $200.0K
YoY Change -90.91% -97.67%
Cash From Investing Activities -$13.90M -$22.60M -$62.62M
YoY Change 6.11% 96.52% 90.26%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $115.9M
YoY Change 479.44%
Debt Paid & Issued, Net $45.14M
YoY Change 450.86%
Cash From Financing Activities 1.500M -15.30M -59.22M
YoY Change 650.0% -26.09% 176.48%
NET CHANGE
Cash From Operating Activities 36.00M 30.20M 90.21M
Cash From Investing Activities -13.90M -22.60M -62.62M
Cash From Financing Activities 1.500M -15.30M -59.22M
Net Change In Cash 23.60M -7.700M -31.63M
YoY Change -38.54% -1062.5% -172.26%
FREE CASH FLOW
Cash From Operating Activities $36.00M $30.20M $90.21M
Capital Expenditures -$14.00M -$22.60M $53.28M
Free Cash Flow $50.00M $52.80M $36.92M
YoY Change -22.36% 16.04% -34.85%

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<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="4%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>1.</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>Organization</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2"><i>Organization</i>&#xA0;&#x2014; We are one of the world&#x2019;s leading manufacturers of firearms. We manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting, bolt action, and single shot rifles), handcuffs, and firearm-related products and accessories for sale to a wide variety of customers, including gun enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We are one of the largest manufacturers of handguns, modern sporting rifles, and handcuffs in the United States and an active participant in the hunting rifle market. We manufacture our firearm products at our facilities in Springfield, Massachusetts and Houlton, Maine. We sell our products under the Smith&#xA0;&amp; Wesson, M&amp;P, and Thompson/Center Arms brands.</font></p> </div>
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Concentrations of Credit Risk</i>&#xA0;&#x2014; Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents in overnight U.S.&#xA0;government securities. Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion. We perform ongoing credit evaluations of our customers&#x2019; financial condition and generally do not require collateral.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">One customer accounted for approximately 13.4%, 11.6%, and 12.2% of our net sales for the fiscal years ended April&#xA0;30, 2014, 2013, and 2012, respectively. This customer accounted for approximately $11.7 million, or 20.1%, of total accounts receivable as of April&#xA0;30, 2014 and $5.5 million, or 11.6%, of total accounts receivable as of April&#xA0;30, 2013. In addition, two other customers accounted for $6.8 million and $6.2 million, or 14.3% and 13.1%, respectively, of total accounts receivable as of April&#xA0;30, 2013.</font></p> </div>
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