WEST JORDAN, Utah, March 29, 2022 (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 January 29, 2022.

“We are very pleased with our performance for the fourth quarter as we exceeded our guidance given earlier in the year,” said Jon Barker, Sportsman’s Warehouse CEO. “While there was some softening in our shooting sports category in 2021, our business fundamentals remain strong, with growth in all our other categories, led by double-digit growth in footwear and apparel. We also expanded our footprint by opening 10 new stores during the year, refurbished another 19 stores, and grew our e-commerce business to over 15% of net sales, successfully executing on our strategic initiatives.”

Mr. Barker continued, “As we look ahead this year, it’s encouraging that we continue to see strong participation in outdoor activities. We will continue to improve our merchandising and overall customer experience, and believe we are well positioned to capture additional market share and further grow our omni-channel platform.”  

For the thirteen weeks ended January 29, 2022:

• Net sales were $416.3 million, a decrease of 5.0%, compared to $438.2 million in the fourth quarter of fiscal year 2020. The net sales decrease was primarily due to lower sales in our firearms and ammunition categories compared to the prior year period. Compared to the the fourth quarter of fiscal year 2019 net sales increased 61.3% from $258.2 million.
  
  
• Same store sales decreased 10.8% during the fourth quarter of 2021, compared to the fourth quarter of 2020. Compared to the same period of 2019, same store sales increased 38.2%.
  
  
• Gross profit was $136.6 million or 32.8% of net sales, compared to $142.0 million or 32.4% of net sales in the comparable prior year period. The 40 basis point improvement as a percentage of net sales can be attributed to favorable product sales mix and higher product margins, partially offset by higher overall transportation and freight costs.
  
  
• Selling, general and administrative (SG&A) expenses increased to $113.4 million, an increase of 10.5%, compared to $102.6 million in the fourth quarter of fiscal year 2020. This increase was primarily due to higher payroll expenses from the addition of 10 new stores during the year, minimum wage increases at 53 of our stores and a one-time retention bonus paid to certain senior employees during the fourth quarter of fiscal year 2021. We also experienced increases in rent, other SG&A expenses, depreciation and store pre-opening expenses during the fourth quarter of fiscal year 2021.
  
  
• Net income was $58.4 million, compared to net income of $29.6 million in the fourth quarter of 2020. Adjusted net income was $22.0 million compared to adjusted net income of $33.5 million in the fourth quarter of 2020 (see “GAAP and Non-GAAP Measures”).
  
  
• Adjusted EBITDA was $38.5 million, compared to $51.5 million in the comparable prior year period (see "GAAP and Non-GAAP Measures").
  
  
• Diluted earnings per share were $1.31 compared to diluted earnings per share of $0.66 in the comparable prior year period. Adjusted diluted earnings per share were $0.49 compared to adjusted diluted earnings per share of $0.75 for the comparable prior year period (see "GAAP and Non-GAAP Measures").
  

For the fifty-two weeks ended January 29, 2022:

• Net sales were $1,506.1 million, an increase of $54.3 million, or 3.7%, compared to fiscal year 2020. This net sales increase was primarily due to the opening of 10 new stores during the year, as well as strong growth in our ecommerce platform compared to the prior year.
  
  
• Same store sales decreased 2.2% during fiscal year 2021 compared to fiscal year 2020. This decrease was due to lower sales in our firearms and ammunition categories. Compared to fiscal year 2019, same store sales increased 42.5%.
  
  
• The Company opened 10 new stores during 2021 and ended the year with 122 total stores in operation.
  
  
• Gross profit was $490.3 million or 32.6% of net sales, as compared to $476.5 million or 32.8% of net sales for fiscal year 2020. This year-over-year decrease of 20-basis points in gross profit margin was due to higher transportation and freight costs.
  
  
• SG&A expenses increased to $399.7 million or 26.5% of net sales, compared with $353.7 million or 24.4% of net sales for fiscal year 2020. This increase was primarily due to higher payroll expenses from the addition of 10 new stores during the year, minimum wage increases at 53 of our stores and a one-time retention bonus paid to certain senior employees during 2021. We also experienced increases in rent, other SG&A expenses, depreciation and store pre-opening expenses during fiscal year 2021.
  
  
• Net income was $108.5 million compared to net income of $91.4 million in fiscal year 2020. Adjusted net income was $76.8 million compared to adjusted net income of $99.1 million in fiscal year 2020 (see “GAAP and Non-GAAP Measures”).
  
  
• Adjusted EBITDA was $136.6 million compared to $163.2 million in fiscal year 2020 (see "GAAP and Non-GAAP Measures").
  
  
• Diluted earnings per share were $2.44 for fiscal year 2021, compared to diluted earnings per share of $2.06 last year. Adjusted diluted earnings per share were $1.72 for fiscal year 2021 compared to adjusted diluted earnings per share of $2.23 last year (see "GAAP and Non-GAAP Measures").
  

Balance sheet highlights as of January 29, 2022:

• The Company ended the year with net debt of $9.1 million, comprised of $57.0 million of cash on hand and $66.1 million of borrowings outstanding under the Company’s revolving credit facility. In comparison, net debt as of the end of fiscal year 2019 was $144.1 million, comprised of $1.7 million of cash on hand and $145.8 million in total debt. In December 2021, we received a $55 million cash payment from Great Outdoors Group in connection with the termination of the merger agreement.
  
  
• Total liquidity was $203 million as of the end of fiscal 2021, comprised of $146 million of availability on the revolving credit facility and $57 million of cash on hand.
  

First Quarter 2022 Outlook:

For the first quarter of fiscal year 2022, net sales are expected to be in the range of $300 million to $310 million, anticipating that same store sales will be down 14% to 11% year-over-year. Adjusted diluted earnings per share for the quarter are expected to be in the range of ($0.01) to $0.01.

Jeff White, Chief Financial Officer of Sportsman’s Warehouse said, “We believe we are in a very solid financial position heading into this year, with sufficient overall inventory levels and a healthy balance sheet. We will take a disciplined approach in how we allocate our capital and will look to utilize the balance sheet as we invest in new store development, bring on new talent and technology, and consider strategic acquisition opportunities. Additionally, we are pleased that our Board has authorized a share repurchase program, as announced last week.”

Conference Call Information:

A conference call to discuss fourth quarter and fiscal year 2021 financial results is scheduled for March 29, 2022, at 4:30PM 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 bonuses and increased wages paid to front-line and non-executive back office associates due to COVID-19, costs incurred for the recruitment and hiring of key members of management, expenses incurred relating to the acquisition of Field and Stream store locations and the terminated merger with the Great Outdoors Group, LLC, a legal settlement accrual, and the costs and impairments recorded relating to the closure of one store during the first quarter of 2020, less the gain on a bargain purchase of tangible assets acquired in connection with the Field & Stream store locations acquired during fiscal year 2020, the termination payment received in connection with the terminated merger agreement with Great Outdoors Group, LLC and recognized tax benefits, as applicable. We define adjusted diluted earnings per share as adjusted net income divided by diluted weighted average shares outstanding. We define Adjusted EBITDA as net income plus interest expense, income tax (benefit) expense, depreciation and amortization, stock-based compensation expense, bonuses and increased wages paid to front-line and non-executive back office associates due to COVID-19, expenses incurred relating to the acquisition of Field and Stream store locations and the terminated merger with the Great Outdoors Group, LLC, pre-opening expenses, the costs and impairments recorded relating to the closure of one store during the first quarter of 2020, a legal settlement accrual costs incurred for the recruitment and hiring of key members of management, less the gain on a bargain purchase of tangible assets acquired in connection with the Field & Stream store locations acquired during fiscal year 2020 and the termination payment received in connection with the terminated merger agreement with Great Outdoors Group, LLC. 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 ability to execute on our strategic initiatives and capture additional market shares and our ability to return capital to our shareholders. 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:  current and future government regulations relating to the sale of firearms and ammunition, which may impact the supply and demand for the Company’s products and ability to conduct its business; the Company’s retail-based business model; general economic, market and other conditions and changes in consumer spending; the Company’s concentration of stores in the Western United States; competition in the outdoor activities and specialty retail market; changes in consumer demands; the Company’s expansion into new markets and planned growth; the impact of COVID-19 on the Company’s operations; 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 January 29, 2022 which will be filed with the SEC on March 30, 2022, 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.

Sportsman’s Warehouse Holdings, Inc. is an outdoor specialty retailer focused on meeting the needs of the seasoned outdoor veteran, the first-time participant, and everyone in between. 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. 

Investor Contacts:

Riley Timmer
Vice President, Investor Relations & Corp. Development
Sportsman’s Warehouse
(801) 566-6681
investors@sportsmans.com

Source: Sportsman's Warehouse Holdings, Inc.