MIDVALE, Utah, March 23, 2016 (GLOBE NEWSWIRE) -- Sportsman's Warehouse Holdings, Inc. ("Sportsman's" or the "Company") (Nasdaq:SPWH) today announced financial results for the thirteen and fifty-two weeks ended January 30, 2016.

For the thirteen weeks ended January 30, 2016:

• Net sales increased by 14.6% to $212.7 million from $185.6 million in the fourth quarter of fiscal year 2014. Same store sales increased by 4.0%. 
   
• Income from operations increased to $22.1 million from $14.1 million in the fourth quarter of fiscal year 2014. Adjusted income from operations, which excludes an accrual with respect to a litigation matter in the fourth quarter of fiscal year 2014 (see "GAAP and Non-GAAP Measures"), increased 21.8% to $22.1 million as compared to $18.1 million in the fourth quarter of fiscal year 2014.
   
• Interest expense decreased to $3.6 million from $9.0 million in the fourth quarter of fiscal year 2014.  Excluding the $5.7 million in refinance related costs incurred during the fourth quarter of fiscal year 2014, interest expense increased to $3.6 million from $3.3 in the prior year period.
   
• Net income was $11.4 million compared to $3.2 million in the fourth quarter of fiscal year 2014. 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 (see "GAAP and Non-GAAP Measures"), was $11.4 million compared to $9.1 million for the fourth quarter of fiscal year 2014.
   
• Diluted earnings per share was $0.27 compared to diluted earnings per share of $0.08 in the fourth quarter of fiscal year 2014. Adjusted diluted earnings per share (see "GAAP and Non-GAAP Measures"), was $0.27 compared to adjusted diluted earnings per share of $0.22 in the fourth quarter of fiscal year 2014.
   
• Adjusted EBITDA was $26.2 million compared to $21.6 million in the fourth quarter of fiscal year 2014 (see "GAAP and Non-GAAP Measures").

For the fifty-two weeks ended January 30, 2016:

• Net sales increased by 10.6% to $729.9 million from $660.0 million in fiscal year 2014. Same store sales increased by 1.1% when compared to fiscal year 2014.
   
• Income from operations increased to $59.3 million from $44.9 million in fiscal year 2014. Adjusted income from operations, which excludes expenses related to our secondary offering in the third quarter of fiscal year 2015, an accrual with respect to a litigation matter in the fourth quarter of fiscal year 2014 as well as its reversal in the second quarter of fiscal year 2015, and expenses related to bonuses paid as a result of the successful completion of our initial public offering ("IPO") in the first quarter of fiscal year 2014 (see "GAAP and Non-GAAP Measures"), increased 9.7% to $56.0 million as compared to $51.1 million in fiscal year 2014.
   
• The Company opened nine new stores in fiscal year 2015, ending the fiscal year with 64 stores in 19 states or retail square footage of 2.8 million. This represents a unit increase of 16.4% from the end of fiscal 2014 and an increase in retail square footage of approximately 250,000 square feet.
   
• Interest expense decreased to $14.2 million from $22.5 million in fiscal year 2014.  Excluding the $5.7 million in refinance related costs incurred during the fourth quarter of fiscal year 2014, interest expense decreased to $14.2 million from $16.8 million in fiscal year 2014.
   
• Net income was $27.8 million compared to $13.8 million in fiscal year 2014. Adjusted net income, which excludes expenses related to our secondary offering in the third quarter of fiscal year 2015, an accrual with respect to a litigation matter in the fourth quarter of fiscal year 2014 as well as its reversal in the second quarter of fiscal year 2015, expenses related to the refinancing of our term loan in the fourth quarter of 2014, and expenses related to the IPO bonuses in the first quarter of 2014, net of taxes (see "GAAP and Non-GAAP Measures"), was $25.8 million compared to adjusted net income of $21.1 million in fiscal year 2014.
   
• Diluted earnings per share was $0.66 compared to diluted earnings per share of $0.34 in fiscal 2014. Adjusted diluted earnings per share (see "GAAP and Non-GAAP Measures"), was $0.61 compared to adjusted diluted earnings per share of $0.50 in fiscal year 2014.
   
• Adjusted EBITDA was $73.0 million compared to $66.3 million in fiscal year 2014 (see "GAAP and Non-GAAP Measures").

John Schaefer, President and Chief Executive Officer, stated: "We are very pleased to have ended fiscal year 2015 with a strong fourth quarter and to have delivered on the revenue and earnings goals for fiscal year 2015 that we set at the beginning of the year. Our revenue increase of 10.6%, modest gross margin expansion, and adjusted net income growth of over 22% in fiscal year 2015 compared to fiscal year 2014 reflect our ability to execute, despite a choppy overall retail environment combined with weather headwinds and continued competition in many of our markets. Both our fourth quarter and fiscal year 2015 performance demonstrate the strength of our business model including our everyday low pricing, best-in-class customer service and our flexible store layout that gives us the ability to profitably operate in both smaller and larger markets."

Mr. Schaefer continued, "Despite the continued momentum we have seen in the use categories of hunting, fishing and camping, we believe it is prudent to take a conservative posture when planning 2016, as we expect the unseasonably warm weather to continue to negatively impact our clothing and footwear categories through the first half of the year. In 2016, we remain focused on growing our store base while maintaining disciplined cost management and responsible capital allocation."

Balance sheet highlights as of January 30, 2016:                      

• Total debt: $182.0 million compared to $199.9 million in fiscal year 2014. The $182.0 million of total debt as of January 30, 2016 consists of $25.3 million outstanding under the Company's revolving credit facility and $156.7 million outstanding under the term loan, net of unamortized discount.
• Total liquidity (cash plus $89.5 million of availability on revolving credit facility): $91.6 million

First Quarter and Fiscal Year 2016 Outlook:

For the first quarter of fiscal year 2016, net sales are expected to be in the range of $155.0 million to $160.0 million based on same store sales change in the range of flat to down low single digits. Net loss is expected to be in the range of ($0.1) million to ($1.0) million, with diluted loss per share of ($0.00) to ($0.02) on a weighted average of approximately 42.4 million estimated common shares outstanding.

For fiscal year 2016, net sales are expected to be in the range of $800.0 million to $820.0 million based on opening eleven new stores for the full year and same store sales change in the range of 0.0% to 2.0%. Net income is expected to be in the range of $27.5 million to $31.1 million, with diluted earnings per share of $0.65 to $0.73 on approximately 42.5 million estimated weighted average common shares outstanding.

Conference Call Information:

A conference call to discuss fourth quarter and full fiscal year 2015 financial results is scheduled for today, March 23, 2016, 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.sportsmanswarehouse.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 weighted average shares outstanding, adjusted diluted earnings per share and adjusted EBITDA. 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 income 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 it 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, our outlook for the first quarter and full fiscal year 2016.  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 risks relating to the Company's retail-based business model, general economic 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 our Form 10-K for the fiscal year ended January 30, 2016 which we expect to file with the SEC on March 24, 2016 and our 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 is a high-growth outdoor sporting goods retailer focused on meeting the everyday needs of the seasoned outdoor veteran, the first-time participant and every enthusiast in between. Our mission is to provide a one-stop shopping experience that equips our customers with the right hunting, shooting, fishing and camping gear to maximize their enjoyment of the outdoors.

For press releases and certain additional information about the Company, visit the Investor Relations section of the Company's website at www.sportsmanswarehouse.com.

 

Investor Contact:
ICR, Inc. 
Farah Soi/Rachel Schacter
(203) 682-8200
investors@sportsmanswarehouse.com