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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 23, 2016  

 SPORTSMAN'S WAREHOUSE HOLDINGS, INC.  
 (Exact Name of Registrant as Specified in Its Charter) 
   
 DELAWARE 
 (State or Other Jurisdiction of Incorporation) 

 

001-36401 39-1975614
(Commission File Number) (I.R.S. Employer Identification No.)
   
7035 South High Tech Drive
Midvale, Utah		 84047
(Address of Principal Executive Offices) (Zip Code)

 

 (801) 566-6681 
 (Registrant's Telephone Number, Including Area Code) 
   
 (Not Applicable) 
 (Former Name or Former Address, if Changed Since Last Report) 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

   [  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   [  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   [  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   [  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 

 

 

Item 2.02. Results of Operations and Financial Condition.

On March 23, 2016, Sportsman's Warehouse Holdings, Inc. (the "Company") issued a press release reporting its results of operations for the fourth quarter and full year ended January 30, 2016. The press release is furnished herewith as Exhibit 99.1 and is specifically incorporated by reference herein.

The information in this Form 8-K and the related information in the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in any such filing.

 

Item 9.01. Financial Statements and Exhibits.

(d)

Exhibits.

99.1

Press release of Sportsman's Warehouse Holdings, Inc., dated March 23, 2016.

 

 SIGNATURE

    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

    SPORTSMAN'S WAREHOUSE HOLDINGS, INC.
    
    
  By:/s/ Kevan P. Talbot
 Date: March 23, 2016 Kevan P. Talbot
   Chief Financial Officer and Secretary
     

EdgarFiling

EXHIBIT 99.1

Sportsman's Warehouse Holdings, Inc. Announces Fourth Quarter and Full Year 2015 Financial Results

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:

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

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:                      

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.


                 
SPORTSMAN’S WAREHOUSE HOLDINGS, INC. 
Condensed Consolidated Statements of Income (Unaudited) 
(in thousands, except per share data) 
                 
                 
 For the Thirteen Weeks Ended   For the Fiscal Year Ended   
                 
 January 30, 2016 % of net
sales		 January 31, 2015 % of net
sales		 January 30, 2016 % of net
sales		 January 31, 2015 % of net
sales		 
                 
Net sales$  212,730   100.0 % $  185,578   100.0 % $  729,912   100.0 % $  660,003   100.0 % 
Cost of goods sold   141,918   66.7 %    123,977   66.8 %    491,382   67.3 %    444,796   67.4 % 
Gross profit   70,812   33.3 %    61,601   33.2 %    238,530   32.7 %    215,207   32.6 % 
                 
Operating expenses:                
Selling, general and administrative expenses   48,703   22.9 %    47,456   25.6 %    179,218   24.6 %    170,315   25.8 % 
Income from operations   22,109   10.4 %    14,145   7.6 %    59,312   8.1 %    44,892   6.8 % 
Interest expense   (3,589)  (1.7%)    (8,993)  (4.8%)    (14,156)  (1.9%)    (22,480)  (3.4%) 
Income before income tax expense   18,520   8.7 %    5,152   2.8 %    45,156   6.2 %    22,412   3.4 % 
Income tax expense   (7,130)  (3.4%)    (1,979)  (1.1%)    (17,385)  (2.4%)    (8,628)  (1.3%) 
Net income$  11,390   5.4 % $  3,173   1.7 % $  27,771   3.8 % $  13,784   2.1 % 
                 
Earnings per share                
Basic$  0.27    $  0.08    $  0.66    $  0.34    
Diluted$  0.27    $  0.08    $  0.66    $  0.34    
                 
Weighted average shares outstanding                
Basic   42,004       41,818       41,966       39,961    
Diluted   42,404       41,968       42,334       40,141    
                 



      
SPORTSMAN’S WAREHOUSE HOLDINGS, INC. 
Condensed Consolidated Balance Sheets (Unaudited) 
(in thousands) 
      
      
AssetsJanuary 30, 2016 January 31, 2015  
Current assets:     
Cash and cash equivalents$  2,109  $  1,751   
Accounts receivable, net   469     425   
Merchandise inventories, net   217,794     185,909   
Prepaid expenses and other   9,686     7,468   
Income taxes receivable   -      5,190   
Deferred income taxes   3,001     2,928   
   Total current assets   233,059     203,671   
Property and equipment, net   62,432     54,317   
Deferred income taxes   2,263     5,398   
Definite lived intangible assets, net    3,923     5,729   
Other long-term assets, net   1,347     1,608   
 $  303,024  $  270,723   
 . .  
Liabilities and Stockholders’ Deficit     
Current liabilities:     
Accounts payable$  46,698  $  28,500   
Accrued expenses   42,480     42,620   
Income taxes payable   1,779     -    
Revolving line of credit   25,263     41,899   
Current portion of long-term debt, net of discount   9,033     1,333   
Current portion of deferred rent   3,018     2,873   
   Total current liabilities   128,271     117,225   
      
Long-term liabilities:     
Long-term debt, net of discount and current portion   147,679     156,713   
Deferred rent credit, net of current portion   29,133     28,117   
   Total long-term liabilities   176,812     184,830   
   Total liabilities   305,083     302,055   
      
Stockholders’ deficit:     
Common stock   420     418   
Additional paid-in capital   77,757     76,257   
Accumulated deficit   (80,236)    (108,007)  
   Total stockholders’ deficit   (2,059)    (31,332)  
 $  303,024  $  270,723   
      
      



           
SPORTSMAN’S WAREHOUSE HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
           
        January 30, 2016 January 31, 2015
 CASH FLOWS FROM OPERATING ACTIVITIES       
Net income       $  27,771  $  13,784 
Adjustments to reconcile net income to net       
cash provided by operating activities:        
Depreciation of property and equipment        9,763     7,344 
Amortization of discount on debt and deferred financing fees      817     6,497 
Amortization of definite lived intangible        1,806     1,806 
Net increase in deferred rent credit        1,161     5,397 
Gain on asset dispositions         -     - 
Deferred income taxes         3,062     (46)
Excess tax benefits from stock-based compensation arrangements     (286)    (287)
Stock-based compensation         2,257     3,293 
Change in assets and liabilities, net of acquisition:      
Accounts receivable, net         (44)    (12)
Merchandise inventories         (31,885)    (24,575)
Prepaid expenses and other         (5,435)    86 
Other long-term assets         239     (107)
Accounts payable         18,198     836 
Accrued expenses         983     8,127 
Income taxes receivable         7,255     (1,670)
     Net cash provided by operating activities       35,662     20,473 
           
CASH FLOWS FROM INVESTING ACTIVITIES:       
Purchase of property and equipment        (33,957)    (30,167)
Purchase of business         -     - 
Proceeds from sale-leaseback transactions       19,006     - 
Proceeds from sale of fixed assets        -     - 
      Net cash used in investing activities       (14,951)    (30,167)
           
CASH FLOWS FROM FINANCING ACTIVITIES:       
Net borrowings on line of credit         (16,636)    12,847 
Borrowings on term loan         -     160,000 
Issuance of common stock, net        -     73,393 
(Decrease) increase in book overdraft        (1,123)    2,609 
Excess tax benefits from stock-based compensation arrangements     286     287 
Payment of withholdings on restricted stock units       (1,041)    (993)
Payment of deferred financing costs        (239)    (2,227)
Principal payments on long-term debt        (1,600)    (234,225)
Discount on term loan         -     (1,600)
     Net cash (used in) provided by financing activities      (20,353)    10,091 
Net change in cash and cash equivalents        358     397 
Cash and cash equivalents at beginning of year       1,751     1,354 
Cash and cash equivalents at end of year     $  2,109  $  1,751 
           



         
SPORTSMAN’S WAREHOUSE HOLDINGS, INC. 
GAAP and Non-GAAP Measures (Unaudited) 
(in thousands, except per share data) 
         
Reconciliation of GAAP income from operations to adjusted income from operations:      
         
  For the Thirteen Weeks Ended For the Fiscal Year Ended 
         
  January 30, 2016 January 31, 2015 January 30, 2016 January 31, 2015 
Income from operations$  22,109  $  14,145  $  59,312  $  44,892  
IPO bonus (1)   -      -      -      2,200  
Litigation accrual (reversal) (2)   -      4,000     (4,000)    4,000  
Secondary offering expenses (3)   -      -      727     -   
Adjusted income from operations$  22,109  $  18,145  $  56,039  $  51,092  
            
Reconciliation of GAAP net income and GAAP diluted weighted average shares outstanding    
to adjusted net income and adjusted weighted average shares outstanding:      
         
Numerator:       
 Net income$  11,390  $  3,173  $  27,771  $  13,784  
 IPO bonus (1)   -      -      -      2,200  
 Litigation accrual (reversal) (2)   -      4,000     (4,000)    4,000  
 Secondary offering expenses (3)   -      -      727     -   
 Refinance related costs (4)   -      5,668     -      5,668  
 Less tax benefit related to IPO bonus   -      -      -      (847) 
 Less tax expense (benefit) related to litigation accrual (reversal)   -      (1,540)    1,540     (1,540) 
 Less tax benefit related to secondary offering expenses   -      -      (280)    -   
 Less tax benefit related to refinance related costs   -      (2,182)    -      (2,182) 
 Adjusted net income $  11,390  $  9,119  $  25,758  $  21,083  
            
Denominator:       
 Diluted weighted average shares outstanding   42,404     41,968     42,334     40,141  
 Initial public offering shares issuance (5)   -      -      -      1,856  
 Adjusted diluted weighted average shares outstanding   42,404     41,968     42,334     41,997  
            
Reconciliation of earnings per share:       
Dilutive earnings per share$  0.27  $  0.08  $  0.66  $  0.34  
Impact of adjustments to numerator and denominator   -      0.14     (0.05)    0.16  
Adjusted earnings per share$  0.27  $  0.22  $  0.61  $  0.50  
            
Reconciliation of net income to adjusted EBITDA:          
Net income$  11,390  $  3,173  $  27,771  $  13,784  
Interest expense   3,589     8,993     14,156     22,480  
Income tax expense   7,130     1,979     17,385     8,628  
Depreciation and amortization   3,005     2,612     11,569     9,150  
Stock-based compensation expense (6)   586     513     2,257     3,293  
Pre-opening expenses (7)   462     358     3,159     2,717  
IPO bonus (1)   -      -      -      2,200  
Litigation accrual (reversal) (2)   -      4,000     (4,000)    4,000  
Secondary offering expenses (3)   -      -      727     -   
Adjusted EBITDA$   26,162   $   21,628   $   73,024   $   66,252   
            
(1) As a result of the completion of our initial public offering and pursuant to the terms of the employment agreements with our executive officers, we paid $2.2 million in bonuses to our executive officers. 
(2) On March 9, 2015, a jury awarded $11.9 million against the defendants in a litigation matter. We reviewed the decision and accrued $4.0 million in our results for the fiscal year and fourth quarter ended January 31, 2015 related to this matter. We strongly disagreed with the jury’s verdict and filed post-trial motions seeking to have the verdict set aside. On July 30, 2015, the court granted our motion for judgment as a matter of law. The plaintiff and a co-defendant have appealed the July 30, 2015 ruling to the appellate court and the appeal is currently in process. Based on the court’s most recent judgment in our favor, we determined that the likelihood of loss in this case is not probable, and, as such, we reversed the previous accrual of $4.0 million in our results for the fiscal year ended January 30, 2016. The accrual and subsequent reversal of the $4.0 million is recorded in selling, general, and administrative expenses in the accompanying statements of income.       
(3) Expenses paid by us in connection with a secondary offering of our common stock by affiliates of Seidler Equity Partners III, L.P. and one of our executive officers.
(4) Refinance related costs are expenses associated with the prepayment penalty and write off of the issuance discount and other deferred financing costs associated with the December 2, 2014 refinance of the Company's term loan. 
(5) Assumes our IPO was effective as of February 2, 2014, the first day of our fiscal year 2014.     
(6) Stock-based compensation expense represents non-cash expenses related to equity instruments granted to employees under our 2013 Performance Incentive Plan. 
(7) Pre-opening expenses include expenses incurred in the preparation and opening of a new store location, such as payroll, travel and supplies, but do not include the cost of the initial inventory or capital expenditures required to open a location. 


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