Smith & Wesson Brands Stock Price, News & Analysis
Company Description
Smith & Wesson Brands, Inc. (NASDAQ: SWBI) is a U.S.-based company in the small arms, ordnance, and ordnance accessories manufacturing industry. According to its public disclosures and investor communications, the company focuses on firearm manufacturing and design, with its stock listed on the Nasdaq Global Select Market under the symbol SWBI.
The company describes itself as a U.S.-based leader in firearm manufacturing and design, offering a portfolio of handgun, long gun, sporting rifle, and suppressor products. These products are sold into global consumer and professional markets, and are used for defense, law enforcement, hunting, and sporting purposes. Smith & Wesson Brands, Inc. highlights the Smith & Wesson and Gemtech brands in its public materials, and prior descriptions also reference the M&P, Thompson/Center Arms, and Performance Center brands as part of its firearm-related portfolio.
Smith & Wesson Brands, Inc. reports that it operates with a primary focus on a Firearms segment, which includes both firearms distribution and manufacturing services. In addition to finished firearms and suppressors, the company states that it provides manufacturing services to third parties. These services include forging and machining, and in some disclosures also include precision plastic injection molding services. This mix of branded products and contract manufacturing positions the company as both a producer of finished firearms and a supplier of specialized manufacturing capabilities to other businesses.
The company’s public releases emphasize that a significant portion of its income is generated from handgun products in the U.S. market, while also noting that it operates internationally. Its firearms and suppressor products are marketed to a range of users in the consumer and professional categories, including law enforcement and military departments, as well as civilian customers engaged in hunting and sporting activities.
Business activities and services
In its recent financial and corporate communications, Smith & Wesson Brands, Inc. identifies several core activities:
- Design and manufacture of firearms, including handguns, long guns, sporting rifles, and suppressors.
- Brand-focused product portfolios under the Smith & Wesson and Gemtech names, with prior disclosures also noting M&P, Thompson/Center Arms, and Performance Center brands.
- Manufacturing services for third parties, such as forging and machining, and in some disclosures, precision plastic injection molding services.
- Firearm training programs offered through the Smith & Wesson Academy in Maryville, Tennessee, which are described as serving both Law Enforcement/Military departments and civilian participants.
Through these activities, the company participates in both product-based and service-based aspects of the firearms manufacturing value chain.
Corporate structure and regulatory context
Smith & Wesson Brands, Inc. is incorporated in Nevada, as indicated in its SEC filings, and its common stock has a par value of $0.001 per share. The company files periodic and current reports with the U.S. Securities and Exchange Commission, including Forms 10-K, 10-Q, 8-K, and proxy statements such as the DEF 14A. These filings provide details on its financial condition, governance, executive compensation, and shareholder voting matters.
In an 8-K filing, the company reports that its common stock is registered under Section 12(b) of the Securities Exchange Act and is traded on the Nasdaq Global Select Market under the symbol SWBI. The same and related filings describe the company’s engagement with lenders through a Second Amended and Restated Credit Agreement and a subsequent First Amendment, which addresses aspects of consolidated funded indebtedness, fixed charge coverage ratios, and certain tax-related adjustments for specified fiscal periods.
Financial reporting and performance measures
Smith & Wesson Brands, Inc. regularly issues quarterly and annual financial results via press releases that are also furnished to the SEC on Form 8-K. These releases include:
- Net sales and gross margin figures.
- GAAP net income or net loss and earnings per share.
- Non-GAAP metrics, such as non-GAAP net income and Adjusted EBITDAS, which the company presents as supplemental measures of operating performance.
- Information on cash flows, including net cash provided by or used in operating, investing, and financing activities.
The company explains in its releases that non-GAAP measures such as non-GAAP net income, Adjusted EBITDAS, and free cash flow are used to provide additional insight into underlying performance trends. Adjustments may include items such as relocation expenses, Smith & Wesson Academy grand opening expenses, stock-based compensation, accrued legal settlements, gains on sale of real estate or intangible assets, and related tax effects. The company notes that these measures have limitations and should be considered alongside GAAP results.
Capital allocation and shareholder matters
Smith & Wesson Brands, Inc. frequently discusses its capital allocation strategy in earnings releases, including:
- Authorization of a quarterly cash dividend per share, with specific dividend amounts and record/payment dates disclosed in each relevant release.
- Use of share repurchase authorizations, as described in certain financial communications.
- Use of credit facilities and notes payable, as detailed in its balance sheets and related 8-K filings regarding credit agreements.
Through its annual meeting of stockholders, documented in proxy materials and 8-K filings, the company addresses matters such as the election of directors, advisory votes on executive compensation (say-on-pay), and ratification of its independent registered public accounting firm. These governance-related disclosures provide insight into how stockholders participate in oversight of the company.
Training and facilities
In its more recent press releases, Smith & Wesson Brands, Inc. notes the existence of the Smith & Wesson Academy in Maryville, Tennessee. The company describes this academy as offering firearm training programs to Law Enforcement/Military departments and civilians. The company also references relocation-related costs and the grand opening of the Smith & Wesson Academy in the context of non-GAAP financial reconciliations, indicating that facility-related investments and relocations are part of its recent operational history.
Use of non-GAAP measures
Across multiple financial releases, Smith & Wesson Brands, Inc. provides reconciliations from GAAP to non-GAAP financial measures. The company states that it believes these measures facilitate comparisons of operating performance from period to period by adjusting for items whose timing or nature might otherwise obscure underlying trends. At the same time, it acknowledges that non-GAAP measures do not reflect all actual expenses and should not be viewed as substitutes for GAAP metrics.