Sportsman's Warehouse Holdings, Inc 10-Q for FY2021 Q3

Sportsman's Warehouse Holdings, Inc. (SPWH)

10-Q 2020-12-03 For: 2020-10-31

Added on April 12, 2026

About this 10-Q

Sportsman's Warehouse Holdings, Inc filed this 10-Q on December 3, 2020, covering the quarter ended October 31, 2020 (FY2021 Q3).

Headline figures

Quarter ended October 31, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $385.75M; up 59.1% from $242.47M a year earlier
Net income: $30.48M; up 190.5% from net income of $10.49M a year earlier
Diluted EPS: $0.68; up 183.3% from $0.24 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware		39-1975614
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1475 West 9000 South, Suite A, West Jordan, Utah		84088
(Address of principal executive offices)		(Zip code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $.01 par value	SPWH	The Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☒

Emerging growth company	☐

		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (unaudited):	4

	Condensed Consolidated Balance Sheets	4

	Condensed Consolidated Statements of Operations	5

	Condensed Consolidated Statements of Stockholders’ Equity	6

	Condensed Consolidated Statements of Cash Flows	7

	Notes to Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33

Item 4.	Controls and Procedures	33

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	34

Item 1A.	Risk Factors	34

Item 5.	Other Information	34

Item 6.	Exhibits	35

	Signatures	36


	October 31,		February 1,
	2020		2020
Assets
Current assets:
Cash	$	19,314	$	1,685
Accounts receivable, net		462		904
Merchandise inventories		322,078		275,505
Income tax receivable		—		812
Prepaid expenses and other		14,564		12,732
Total current assets		356,418		291,638
Operating lease right of use asset		239,254		224,520
Property and equipment, net		99,495		98,767
Goodwill		1,496		1,496
Definite lived intangibles, net		299		220
Total assets	$	696,962	$	616,641

Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	135,949	$	38,157
Accrued expenses		106,430		70,118
Income taxes payable		5,315		—
Operating lease liability, current		35,730		34,487
Revolving line of credit		—		116,078
Current portion of long-term debt, net of discount and debt issuance costs		—		5,936
Total current liabilities		283,424		264,776
Long-term liabilities:
Long-term debt, net of discount, debt issuance costs, and current portion		7,950		23,781
Deferred income taxes		4,154		562
Operating lease liability, noncurrent		227,333		217,254
Total long-term liabilities		239,437		241,597
Total liabilities		522,861		506,373

Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 20,000 shares authorized; 0 shares issued and outstanding		—		—
Common stock, $.01 par value; 100,000 shares authorized; 43,591 and 43,296 shares issued and outstanding, respectively		436		433
Additional paid-in capital		88,823		86,806
Accumulated earnings		84,842		23,029
Total stockholders' equity		174,101		110,268
Total liabilities and stockholders' equity	$	696,962	$	616,641


	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	October 31,		November 2,		October 31,		November 2,
	2020		2019		2020		2019
Net sales	$	385,748	$	242,466	$	1,013,572	$	628,249
Cost of goods sold		255,166		158,256		679,122		416,644
Gross profit		130,582		84,210		334,450		211,605

Selling, general, and administrative expenses		92,252		68,336		251,077		191,326
Income from operations		38,330		15,874		83,373		20,279
Bargain purchase gain		(2,218)		—		(2,218)		—
Interest expense		536		2,094		3,088		6,552
Income before income taxes		40,012		13,780		82,503		13,727
Income tax expense		9,530		3,287		20,690		3,195
Net income	$	30,482	$	10,493	$	61,813	$	10,532
Earnings per share:
Basic	$	0.70	$	0.24	$	1.42	$	0.24
Diluted	$	0.68	$	0.24	$	1.40	$	0.24
Weighted average shares outstanding:
Basic		43,609		43,230		43,490		43,126
Diluted		44,510		43,559		44,260		43,316


For the Thirteen Weeks Ended October 31, 2020 and November 2, 2019
	Common Stock			Restricted nonvoting common stock			Additional paid-in- capital		Accumulated (deficit) earnings		Total stockholders' equity
	Shares	Amount		Shares	Amount		Amount		Amount		Amount

Balance at August 3, 2019	43,230	$	432	—	$	—	$	85,422	$	2,853	$	88,707
Stock based compensation	—		—	—		—		619		—		619
Net income	—		—	—		—		—		10,493		10,493
Balance at November 2, 2019	43,230	$	432	—	$	—	$	86,041	$	13,346	$	99,819

Balance at August 1, 2020	43,591	$	436	—	$	—	$	87,941	$	54,360	$	142,737
Stock based compensation	—		—	—		—		882		—		882
Net income	—		—	—		—		—		30,482		30,482
Balance at October 31, 2020	43,591	$	436	—	$	—	$	88,823	$	84,842	$	174,101




For the Thirty-Nine Weeks Ended October 31, 2020 and November 2, 2019
	Common Stock			Restricted nonvoting common stock			Additional paid-in- capital		Accumulated (deficit) earnings		Total stockholders' equity
	Shares	Amount		Shares	Amount		Amount		Amount		Amount

Balance at February 2, 2019	42,978	$	430	—	$	—	$	84,671	$	(6,441)	$	78,660
Impact of change for ASC 842 adoption	—		—	—		—		—		9,255		9,255
Vesting of restricted stock units	198		2	—		—		(2)		—		—
Payment of withholdings on restricted stock units	—		—	—		—		(369)		—		(369)
Issuance of common stock for cash per employee stock purchase plan	54		—	—		—		174		—		174
Stock based compensation	—		—	—		—		1,567		—		1,567
Net income	—		—	—		—		—		10,532		10,532
Balance at November 2, 2019	43,230	$	432	—	$	—	$	86,041	$	13,346	$	99,819

Balance at February 1, 2020	43,296	$	433	—	$	—	$	86,806	$	23,029	$	110,268
Vesting of restricted stock units	255		3	—		—		(3)		—		—
Payment of withholdings on restricted stock units	—		—	—		—		(689)		—		(689)
Issuance of common stock for cash per employee stock purchase plan	40		—	—		—		273		—		273
Stock based compensation	—		—	—		—		2,436		—		2,436
Net income	—		—	—		—		—		61,813		61,813
Balance at October 31, 2020	43,591	$	436	—	$	—	$	88,823	$	84,842	$	174,101
The accompanying notes are an integral part of these condensed consolidated financial statements


	October 31, 2020		February 1, 2020
Right of return assets, which are included in prepaid expenses and other	$	2,323	$	1,683
Estimated gift card contract liability, net of breakage		(16,088)		(13,575)
Estimated loyalty contract liability, net of breakage		(8,654)		(9,621)
Sales return liabilities, which are included in accrued expenses		(3,467)		(2,512)


	Operating
Year Endings:	Leases
2020 (remainder)	$	14,416
2021		56,232
2022		53,245
2023		48,574
2024		40,158
Thereafter		161,734
Undiscounted cash flows	$	374,359
Reconciliation of lease liabilities:
Present values	$	263,063
Lease liabilities - current		35,730
Lease liabilities - noncurrent		227,333
Lease liabilities - total	$	263,063
Difference between undiscounted and discounted cash flows	$	111,296


		Weighted
		average
		grant-date
	Shares	fair value
Balance at February 2, 2019	26	$	11.25
Grants	—		—
Forfeitures	—		—
Vested	(26)		11.25
Balance at November 2, 2019	—	$	—


		March 12, 2020
Cash paid to seller	$	1,075
Payable to seller		1,064
Total purchase price	$	2,139


		March 12, 2020
Cash	$	10
Inventory		2,133
Property, plant, and equipment		892
Operating lease right of use asset		2,070
Operating lease right of use liability		(1,794)
Deferred tax liability		(314)
Bargain purchase		(858)
Total	$	2,139


		May 14, 2020
Cash paid to seller	$	1,317
Payable to seller		1,094
Total purchase price	$	2,411


		October 8, 2020
Cash paid to seller	$	227
Payable to seller		1,774
Total purchase price	$	2,001


		October 11, 2019
Cash paid to seller	$	19,241
Payable to seller		9,462
Total purchase price	$	28,703


		Thirteen Weeks Ended		Thirty-Nine Weeks Ended
		October 31,	November 2,	October 31,	November 2,
Department	Product Offerings	2020	2019	2020	2019
Camping	Backpacks, camp essentials, canoes and kayaks, coolers, outdoor cooking equipment, sleeping bags, tents and tools	12.9%	14.9%	13.8%	15.5%
Apparel	Camouflage, jackets, hats, outerwear, sportswear, technical gear and work wear	8.6%	10.3%	6.5%	8.7%
Fishing	Bait, electronics, fishing rods, flotation items, fly fishing, lines, lures, reels, tackle and small boats	7.8%	8.9%	11.5%	12.6%
Footwear	Hiking boots, socks, sport sandals, technical footwear, trail shoes, casual shoes, waders and work boots	5.6%	7.5%	5.3%	7.4%
Hunting and Shooting	Ammunition, archery items, ATV accessories, blinds and tree stands, decoys, firearms, reloading equipment and shooting gear	57.4%	48.5%	56.3%	47.4%
Optics, Electronics, Accessories, and Other	Gift items, GPS devices, knives, lighting, optics, two-way radios, and other license revenue, net of revenue discounts	7.7%	9.9%	6.6%	8.4%
Total		100.0%	100.0%	100.0%	100.0%


	October 31,		February 1,
	2020		2020
Furniture, fixtures, and equipment	$	93,459	$	84,059
Leasehold improvements		107,026		103,791
Construction in progress		5,241		1,571
Total property and equipment, gross		205,726		189,421
Less accumulated depreciation and amortization		(106,231)		(90,654)
Total property and equipment, net	$	99,495	$	98,767


Exhibit Number		Description

3.1		Amended and Restated Certificate of Incorporation of Sportsman’s Warehouse Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q filed on June 11, 2014).

3.2		Amended and Restated Bylaws of Sportsman’s Warehouse Holdings, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 10-Q filed on Form 8-K on April 3, 2020).

31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**		Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*		XBRL Taxonomy Extension Schema Document.

101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)


	SPORTSMAN’S WAREHOUSE HOLDINGS, INC.

Date: December 3, 2020	By:	/s/ Jon Barker
		Jon Barker
		President and Chief Executive Officer
		(Principal Executive Officer)

Date: December 3, 2020	By:	/s/ Robert K. Julian
		Robert K. Julian
		Chief Financial Officer
		(Principal Financial and Accounting Officer)