WEST JORDAN, Utah, March 26, 2020 (GLOBE NEWSWIRE) — Sportsman’s Warehouse Holdings, Inc. (“Sportsman’s Warehouse” or the “Company”) (Nasdaq: SPWH) today announced financial results for the thirteen and fifty-two weeks ended February 1, 2020.
“We are pleased with our fourth quarter and fiscal year 2019 results. Despite some competitive challenges in December, we exceeded the high-end of our updated outlook on net sales, and met the high-end of our updated outlook on earnings per share,” said Jon Barker, Sportsman’s Warehouse CEO. “We made great progress in 2019 executing on our growth initiatives, which included enhancing our omni-channel platform, improving our loyalty program, and broadening our firearms products and services offering. In 2019, we grew to 103 stores through our acquisition of eight Field & Stream stores in October and three additional store openings earlier in the year.”Mr. Barker continued, “Looking forward to 2020, we feel very good about our competitive positioning and the underlying strength of our business. Today, we are announcing two additional new stores for 2020, which increases our new store announcements to seven for the year so far. These seven new stores include two previous Gander locations, two additional Field & Stream locations, and our first small-format concept store.”“We have gained significant momentum both online and in stores to date in Q1. We believe this is driven by fewer competitors, the current election cycle, and increased demand from COVID-19 uncertainty. However, there is significant uncertainty in the current environment and therefore, we will not be issuing forward guidance at this time.”“We remain optimistic about the long-term opportunities for our business. As competitors continue to de-emphasize and/or exit the firearm and ammunition categories, we see significant opportunity to capture market share,” Mr. Barker commented. “Our differentiated positioning within a consolidating industry, our dedication to the specialty outdoor retail space, and our talented team are combining to create a competitive advantage for Sportsman’s Warehouse. We look forward to a strong 2020 and beyond.”For the thirteen weeks ended February 1, 2020:Net sales increased by 6.4% to $258.2 million from $242.7 million in the fourth quarter of fiscal year 2018. The net sales increase was primarily due to a strong performance from the eight acquired stores, momentum in the firearm and ammunition categories in January, and growth in our ecommerce business compared to prior year. Same store sales performance was better than anticipated, decreasing by 4.8% in the fourth quarter of 2019 as compared to the fourth quarter of 2018.
 The Company ended fiscal year 2019 with 103 stores in 27 states, or square footage growth of 13.6% from the end of the fourth quarter of fiscal 2018. To date, the Company has announced the planned opening of 7 new stores in fiscal year 2020, including two additional Field & Stream locations, in Michigan and Kentucky, acquired from DICK’S Sporting Goods. 
 For the fourth quarter of 2019, gross profit was $85.0 million or 32.9% of net sales, as compared to $79.5 million or 32.8% of net sales in the prior year period, a year-over-year increase of $5.5 million in gross profit and a 10-basis point improvement in gross profit margin.
 Net income was $9.7 million compared to net income of $10.6 million in the fourth quarter of fiscal year 2018. Adjusted net income in the fourth quarter of fiscal year 2019 was $9.3 million, which excluded a non-recurring tax benefit, acquisition costs, and executive transition costs. There were no non-GAAP adjustments to net income in the fourth quarter of fiscal 2018 (see “GAAP and Non-GAAP Measures”).
 For the fourth quarter of 2019, diluted earnings per share was $0.22 compared to diluted earnings per share of $0.25 for the comparable period in prior year. Adjusted diluted earnings per share was $0.21 compared to adjusted diluted earnings per share of $0.25 for the comparable period in prior year (see “GAAP and Non-GAAP Measures”).
 Adjusted EBITDA was $19.6 million compared to $22.0 million in the fourth quarter of fiscal year 2018 (see “GAAP and Non-GAAP Measures”).For the fifty-two weeks ended February 1, 2020:Net sales increased by 4.4% to $886.4 million from $849.1 million in fiscal year 2018 primarily due to three new store openings and the acquisition of eight new store locations. Same store sales decreased by 0.9% from fiscal year 2018.
 Gross profit was $296.6 million or 33.5% of net sales, as compared to $285.0 million or 33.6% of net sales in fiscal year 2018, a year-over-year increase of $11.6 million in gross profit and a 10-basis point decline in gross profit margin.
 Net income was $20.2 million compared to net income of $23.8 million in fiscal year 2018. Adjusted net income was $20.6 million in fiscal year 2019 as compared to $25.9 million in fiscal year 2018 (see “GAAP and Non-GAAP Measures”).
 Diluted earnings per share was $0.46 compared to diluted earnings per share of $0.55 for fiscal year 2018. Adjusted diluted earnings per share was $0.47 for fiscal year 2019 compared to adjusted diluted earnings per share of $0.60 in fiscal year 2018 (see “GAAP and Non-GAAP Measures”).
 Adjusted EBITDA was $59.0 million compared to $68.5 million in fiscal year 2018 (see “GAAP and Non-GAAP Measures”).Balance sheet highlights as of February 1, 2020:
Total debt was $145.8 million as of the end of fiscal year 2019, consisting of $116.1 million outstanding under the Company’s revolving credit facility and $29.7 million outstanding under the term loan, net of unamortized debt issuance costs. This is a reduction of $34.1 million of debt year-over-year.
 Total liquidity (cash plus $44.3 million of availability on revolving credit facility): $46.0 millionFirst Quarter and Fiscal Year 2020 Outlook:We will not be issuing forward guidance at this time.Conference Call Information:A conference call to discuss fourth quarter and fiscal year 2019 financial results is scheduled for today, March 26, 2020, at 4:30 PM Eastern Time. The conference call will be webcast and may be accessed via the Investor Relations section of the Company’s website at www.sportsmans.com.Non-GAAP Information
This press release includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission (the “SEC”): adjusted income from operations, adjusted net income, adjusted diluted earnings per share and Adjusted EBITDA. We define adjusted income from operations and adjusted net income as income from operations and net income, respectively, in each case, plus expenses incurred relating to the transition of our CFO and the recruitment and hiring of various other key members of management, certain expenses incurred relating to the acquisition of eight Field and Stream stores, charges incurred in connection with the retirement of the Company’s former CEO and the write-off of deferred financing fees and debt discount associated with the Company’s prior term loan refinanced in the third fiscal quarter of 2018 and less a non-recurring tax benefit related to our 2017 tax return and 2019 tax provision, as applicable. Adjusted diluted earnings per share is diluted earnings per share excluding the impact of expenses incurred relating to the transition of our CFO and the recruitment and hiring of  other key members of management, certain expenses incurred relating to the acquisition of eight Field and Stream stores, charges incurred in connection with the retirement of the Company’s former CEO and the write-off of deferred financing fees and debt discount associated with the Company’s prior term loan refinanced in the third fiscal quarter of 2018 and less a non-recurring tax benefit related to our 2017 tax return and 2019 tax provision, as applicable. We define Adjusted EBITDA as net income plus interest expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation expense, pre-opening expenses, and other gains, losses and expenses that we do not believe are indicative of our ongoing expenses. The Company has reconciled these non-GAAP financial measures with the most directly comparable GAAP financial measures under “GAAP and Non-GAAP Measures” in this release. The Company believes that these non-GAAP financial measures not only provide its management with comparable financial data for internal financial analysis but also provide meaningful supplemental information to investors. Specifically, these non-GAAP financial measures allow investors to better understand the performance of the Company’s business and facilitate a more meaningful comparison of its diluted earnings per share and actual results on a period-over-period basis. The Company has provided this information as a means to evaluate the results of its ongoing operations. Other companies in the Company’s industry may calculate these items differently than the Company does. Each of these measures is not a measure of performance under GAAP and should not be considered as a substitute for the most directly comparable financial measures prepared in accordance with GAAP. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.Forward-Looking Statements This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements in this release include, but are not limited to, statements regarding our market share opportunities and competitive positioning and the impact of the coronavirus.  Investors can identify these statements by the fact that they use words such as “continue”, “expect”, “may”, “opportunity”, “plan”, “future”, “ahead” and similar terms and phrases. The Company cannot assure investors that future developments affecting the Company will be those that it has anticipated. Actual results may differ materially from these expectations due to many factors including, but not limited to: the potential effects of the coronavirus (COVID-19), including a decrease in store traffic, interruptions or delays in our supply chain and the potential closure of all or substantially all of our stores; our ability to integrate the eight recently acquired stores; the Company’s retail-based business model; general economic, market and other conditions and consumer spending; the Company’s concentration of stores in the Western United States; competition in the outdoor activities and sporting goods market; changes in consumer demands; the Company’s expansion into new markets and planned growth; current and future government regulations; risks related to the Company’s continued retention of its key management; the Company’s distribution center; quality or safety concerns about the Company’s merchandise; events that may affect the Company’s vendors; trade restrictions; and other factors that are set forth in the Company’s filings with the SEC, including under the caption “Risk Factors” in the Company’s Form 10-K for the fiscal year ended February 2, 2019 which was filed with the SEC on March 29, 2019 and the Company’s other public filings made with the SEC and available at www.sec.gov. If one or more of these risks or uncertainties materialize, or if any of the Company’s assumptions prove incorrect, the Company’s actual results may vary in material respects from those projected in these forward-looking statements. Any forward-looking statement made by the Company in this release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.About Sportsman’s Warehouse Holdings, Inc.We provide outstanding gear and exceptional service to inspire outdoor memories.For press releases and certain additional information about the Company, visit the Investor Relations section of the Company’s website at www.sportsmans.com. 




Bay Street News