MIDVALE, Utah, October 21, 2019 – Shares of Sportsman’s Warehouse Holdings Inc. (NASDAQ: SPWH) lost -0.79% to $6.26. The stock traded total volume of 829.108K shares higher than the average volume of 508.16K shares.

Sportsman’s Warehouse Holdings, Inc. (SPWH) reported 3.4% decrease in net sales to $174.00M from $180.10M in the first quarter of fiscal year 2018 primarily due to the difficult event-driven comparisons in the firearm and ammunition categories in the first quarter of fiscal year 2018. Same store sales decreased by 5.7% from the comparable prior year period.

Loss from operations was $5.40M compared to $3.70M in the first quarter of fiscal year 2018. Adjusted loss from operations was $5.00M in the first quarter of fiscal 2019, which excludes expenses, incurred relating to the transition of the Company’s CFO and the recruitment and hiring of various key members of the senior management team. Adjusted loss from operations was $1.00M in the first quarter of fiscal 2018, which excludes charges incurred in conjunction with the retirement of the Company’s former CEO.  Interest expense decreased to $2.10M from $3.60M in the first quarter of fiscal year 2018.

Net loss was $5.50M compared to net loss of $5.80M in the first quarter of fiscal year 2018. Adjusted net loss in the first quarter of fiscal 2019 was $5.20M, which excludes expenses incurred relating to the transition of the Company’s CFO and the recruitment and hiring of various key members of the senior management team. Adjusted net loss in the first quarter of fiscal 2018 was $3.60M, which excludes charges incurred in conjunction with the retirement of the Company’s former CEO. Adjusted EBITDA was $0.40M compared to $4.80M in the first quarter of fiscal year 2018.

Balance sheet highlights as of May 4, 2019:

  • Total debt: $175.20M consisting of $141.60M outstanding under the Company’s revolving credit facility and $33.60M outstanding under the term loan, net of unamortized debt issuance costs.
  • Total liquidity (cash plus $39.30M of availability on revolving credit facility): $41.00M

Second Quarter and Fiscal Year 2019 Outlook:

For the second quarter of fiscal year 2019, net sales are expected to be in the range of $205.00M to $211.00M based on a change in same store sales in the range of (0.5%) to 1.5% compared to the corresponding period of fiscal year 2018. Net income is expected to be in the range of $4.50M to $5.90M with diluted earnings per share of $0.10 to $0.14 on a weighted average of approximately 43.20M estimated common shares outstanding.

For fiscal year 2019, net sales are expected to be in the range of $860.00M to $884.00M based on a change in same store sales in the range of (1.0%) to 1.5% compared to fiscal year 2018. Adjusted net income is expected to be in the range of $20.80M to $26.00M with adjusted earnings per diluted share of $0.48 to $0.60 on a weighted average of approximately 43.20M estimated common shares outstanding, when adjusted for the executive transition costs incurred in the first quarter of fiscal 2019 relating to the transition of the Company’s CFO and the recruitment and hiring of various key members of the senior management team

SPWH has the market capitalization of $272.81M and its EPS growth ratio for the past five years was 1.00%. The return on assets ratio of the Company was 4.50% while its return on investment ratio stands at 13.70%. Price to sales ratio was 0.32 while 92.60% of the stock was owned by institutional investors.