Business Context and Reporting Period
Company: Sportsman's Warehouse Holdings, Inc.
Filing Type: Form 8-K (Current Report)
Date: July 18, 2018
Item: 8.01 Other Events (Reaffirmation of Financial Outlook)
Reporting Period: Second Quarter and Full Fiscal Year 2018
Key Financial Metrics and Guidance
The Company reaffirmed its financial outlook for the second quarter and full fiscal year 2018. The filing provides both GAAP and non-GAAP (Adjusted) estimates.
Second Quarter Fiscal 2018 Estimates
- Net Sales: $199.0 million to $206.0 million
- Same Store Sales: (2.0)% to 2.0% increase vs. prior year
- GAAP Net Income: $4.4 million to $5.65 million
- GAAP Diluted EPS: $0.14 to $0.17
- Adjusted Net Income: $5.879 million to $7.129 million
- Adjusted Diluted EPS: $0.14 to $0.17
Full Fiscal Year 2018 Estimates
- Net Sales: $837.0 million to $860.0 million
- Same Store Sales: (1.0)% to 2.0% increase vs. prior year
- GAAP Net Income: $20.1 million to $23.9 million
- GAAP Diluted EPS: $0.47 to $0.56
- Adjusted Net Income: $23.827 million to $27.627 million
- Adjusted Diluted EPS: $0.55 to $0.64
Note: The filing does not provide specific data on cash flow, debt levels, or liquidity ratios for this period.
Material Changes and Unusual Items
The guidance includes adjustments for specific one-time expenses incurred in the first quarter of fiscal 2018, which are excluded from the "Adjusted" metrics:
- CEO Retirement Severance: $2.248 million (net of tax) related to the retirement of former CEO John Schaefer.
- Deferred Financing Fees: $1.479 million (net of tax) associated with the amendment of the revolving line of credit and payoff of the term loan.
These items reduce GAAP net income but are added back to calculate Adjusted Net Income to reflect ongoing operational performance.
Management Commentary and Risks
Management utilizes non-GAAP measures to facilitate period-over-period comparisons and internal analysis. The filing includes standard forward-looking statement disclaimers, noting that actual results may differ due to:
- General economic conditions and consumer spending.
- Geographic concentration of stores in the Western United States.
- Competition in the outdoor and sporting goods market.
- Changes in consumer demand and expansion into new markets.
- Regulatory changes and vendor-related risks.
Investor Verification Checklist
- Verify the actual Q2 2018 results against the reaffirmed sales range of $199.0M–$206.0M.
- Confirm the impact of the $2.248M CEO severance and $1.479M financing fee write-off on Q1 2018 GAAP earnings.
- Monitor same-store sales performance, which is projected to range between a 2.0% decline and a 2.0% increase.
- Review the Company's Form 10-K (filed March 29, 2018) for detailed risk factors regarding store concentration and competition.
- Assess the weighted average share count assumption of approximately 43.0 million shares used in EPS calculations.