SWBI Smith and Wesson Brands Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 2024

Commission File No. 001-31552

 

 

 

Smith & Wesson Brands, Inc.

(Exact name of registrant as specified in its charter)

Nevada		87-0543688
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2100 Roosevelt Avenue Springfield, Massachusetts		01104
(Address of principal executive offices)		(Zip Code)

(800) 331-0852

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each Class	Trading Symbol	Name of exchange on which registered
Common Stock, par value $0.001 per share	SWBI	Nasdaq Global Select Market

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer			☒
Non-accelerated filer		☐		Smaller reporting company			☐
Emerging growth company		☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The registrant had 45,516,776 shares of common stock, par value $0.001, outstanding as of March 5, 2024.

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SMITH & WESSON BRANDS, INC.

Quarterly Report on Form 10-Q

For the Three and Nine Months Ended January 31, 2024 and 2023

 

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION
	Item 1. Financial Statements (Unaudited)		4
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
	Item 3. Quantitative and Qualitative Disclosures About Market Risk		26
	Item 4. Controls and Procedures		26
PART II - OTHER INFORMATION
	Item 1. Legal Proceedings		27
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		27
	Item 5. Other Information		27
	Item 6. Exhibits		27
Signatures			29
EX-31.1
EX-31.2
EX-32.1
EX-32.2

 

Smith & Wesson®, S&W®, M&P®, M&P Shield®, Performance Center®, Airlite®, Airweight®, American Guardians®, America’s Master Gunmaker®, Armornite®, Arrow®, Aurora®, Aurora-II®, Blast Jacket®, Bodyguard®, Carry Comp®, Chiefs Special®, Club 1852®, Compass®, Competitor®, Contender®, CSX®, Dagger®, Encore®, E-Series®, EZ®, Flextech®, G-Core®, Gemtech®, Gemtech Suppressors®, GM®, GM-S1®, GMT-Halo®, Governor®, Integra®, Lady Smith®, Lever Lock®, Lunar®, M&P FPC®, M2.0®, Mag Express®, Magnum®, Maxi-Hunter®, Mist-22®, Mountain Gun®, Number 13®, PC®, Power Rod®, Protected by Smith & Wesson®, Put A Legend On Your Line®, QLA®, Quick Load Accurizor®, Quickmount®, Shield®, Smith & Wesson Collectors Association®, Smith & Wesson Performance Center®, Smith & Wesson Precision Components®, Speed Breech®, Speed Breach XT®, SW Equalizer®, SW22 Victory®, Swing Hammer®, T/C®, T/CR22®, T17®, The S&W Bench®, The Sigma Series®, Thompson/Center®, Trek®, Triumph®, U-View®, Volunteer®, and Weather Shield® are some of the registered U.S. trademarks of our company or one of our subsidiaries. This report also may contain trademarks and trade names of other companies.

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Statement Regarding Forward-Looking Information

The statements contained in this Quarterly Report on Form 10-Q that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained or incorporated herein by reference in this Quarterly Report on Form 10-Q, including statements regarding our future operating results, future financial position, business strategy, objectives, goals, plans, prospects, markets, and plans and objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “targets,” “contemplates,” “projects,” “predicts,” “may,” “might,” “plan,” “will,” “would,” “should,” “could,” “may,” “can,” “potential,” “continue,” “objective,” or the negative of those terms, or similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. Specific forward-looking statements in this Quarterly Report on Form 10-Q include statements regarding our intention to occupy our Connecticut facility through January 4, 2025; our belief that there are no indications of impairment relating to right-of-use assets; expected undiscounted cashflows, based on the Assignment and Assumption Agreement (as defined herein), for future periods; lease payments for all our operating and finance leases for future periods; the outcome of the lawsuits to which we are subject and their effect on us; our belief that the remaining claims asserted by Gemini (as defined herein) and plaintiffs in a putative class action against us have no merit and that we intend to aggressively defend this action; our belief with respect to certain matters described in the Commitments and Contingencies – Litigation section, that the allegations are unfounded and, in addition, that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party; our belief that our accruals for product liability cases and claims are a reasonable quantitative measure of the cost to us of product liability cases and claims; our belief that we have provided adequate accruals for defense costs; our intention, in connection with our new facility in Maryville, Tennessee, to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $25.97 at the facility; our expectation, when adding the cost of machinery and equipment, to spend between $160.0 million and $170.0 million through the end of fiscal 2024; our intention, with respect to assets associated with our assembly operations in Massachusetts, to either move those assets to the Tennessee facility at the appropriate time or sell or sublease those assets that will not be moved; our expectation that subsequent to the Relocation, our Massachusetts facility will continue to remain an important part of our manufacturing activities with significant portions of the operations being unaffected by the Relocation; our intention to relocate a portion of our plastic injection molding operations to the Tennessee facility; our intention to continue to evaluate possible losses associated with any impairment of the Connecticut facility assets as we determine which assets may be sold; our belief that inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results; our expectation that our inventory levels will remain relatively flat during our fourth fiscal quarter; our expectation for capital expenditures in fiscal 2024; factors affecting our future capital requirements; availability of equity or debt financing on acceptable terms, if at all; the record date and payment date for our dividend; and our belief that our existing capital resources and credit facilities will be adequate to fund our operations, including our finance leases and other commitments, for the next 12 months. All forward-looking statements included herein are based on information available to us as of the date hereof and speak only as of such date. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. The forward-looking statements contained in or incorporated by reference into this Quarterly Report on Form 10-Q reflect our views as of the date hereof about future events and are subject to risks, uncertainties, assumptions, and changes in circumstances that may cause our actual results, performance, or achievements to differ significantly from those expressed or implied in any forward-looking statement. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future events, results, performance, or achievements. A number of factors could cause actual results to differ materially from those indicated by the forward-looking statements. Such factors include, among others, economic, political, social, legislative, regulatory, inflationary, and health factors; the potential for increased regulation of firearms and firearm-related products; actions of social activists that could have an adverse effect on our business; the impact of lawsuits; the demand for our products; the state of the U.S. economy in general and the firearm industry in particular; general economic conditions and consumer spending patterns; our competitive environment; the supply, availability, and costs of raw materials and components; speculation surrounding fears of terrorism and crime; our anticipated growth and growth opportunities; our ability to effectively manage and execute the Relocation; our ability to increase demand for our products in various markets, including consumer, law enforcement, and military channels, domestically and internationally; our penetration rates in new and existing markets; our strategies; our ability to maintain and enhance brand recognition and reputation; our ability to introduce new products; the success of new products; our ability to expand our markets; the potential for cancellation of orders from our backlog; and other factors detailed from time to time in our reports filed with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2023, or the Fiscal 2023 Form 10-K.

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PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

		As of:
		January 31, 2024				April 30, 2023
		(In thousands, except par value and share data)
ASSETS
Current assets:
Cash and cash equivalents		$	47,367			$	53,556
Accounts receivable, net of allowances for credit losses of $0 on    January 31, 2024 and $23 on April 30, 2023			60,647				55,153
Inventories			153,529				177,118
Prepaid expenses and other current assets			9,020				4,917
Income tax receivable			5,613				1,176
Total current assets			276,176				291,920
Property, plant, and equipment, net			256,830				210,330
Intangibles, net			2,670				3,588
Goodwill			19,024				19,024
Deferred income taxes			8,085				8,085
Other assets			7,781				8,347
Total assets		$	570,566			$	541,294
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	36,141			$	36,795
Accrued expenses and deferred revenue			24,333				20,149
Accrued payroll and incentives			19,897				18,565
Accrued income taxes			190				1,831
Accrued profit sharing			3,473				8,203
Accrued warranty			2,110				1,670
Total current liabilities			86,144				87,213
Notes and loans payable (Note 4)			64,858				24,790
Finance lease payable, net of current portion			35,809				36,961
Other non-current liabilities			7,324				7,707
Total liabilities			194,135				156,671
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares    issued or outstanding			—				—
Common stock, $0.001 par value, 100,000,000 shares authorized, 75,325,789 shares    issued and 45,568,550 shares outstanding on January 31, 2024 and 75,029,300    shares issued and 45,988,930 shares outstanding on April 30, 2023			75				75
Additional paid-in capital			287,827				283,666
Retained earnings			520,050				523,184
Accumulated other comprehensive income			73				73
Treasury stock, at cost (29,757,239 shares on January 31, 2024 and    29,040,370 shares on April 30, 2023)			(431,594	)			(422,375	)
Total stockholders’ equity			376,431				384,623
Total liabilities and stockholders' equity		$	570,566			$	541,294

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

	For the Three Months Ended January 31,								For the Nine Months Ended January 31,
	2024				2023				2024				2023
	(In thousands, except per share data)
Net sales	$	137,484			$	129,036			$	376,686			$	334,465
Cost of sales		98,060				87,195				275,094				221,890
Gross profit		39,424				41,841				101,592				112,575
Operating expenses:
Research and development		1,969				2,133				5,492				5,675
Selling, marketing, and distribution		10,108				9,996				31,101				27,454
General and administrative		16,065				15,576				45,599				48,867
Total operating expenses		28,142				27,705				82,192				81,996
Operating income		11,282				14,136				19,400				30,579
Other income/(expense), net:
Other (expense)/income, net		(11	)			840				176				2,304
Interest (expense)/income, net		(955	)			(508	)			(1,448	)			(1,361	)
Total other (expense)/income, net		(966	)			332				(1,272	)			943
Income from operations before income taxes		10,316				14,468				18,128				31,522
Income tax expense		2,434				3,389				4,629				7,483
Net income	$	7,882			$	11,079			$	13,499			$	24,039
Net income per share:
Basic - net income	$	0.17			$	0.24			$	0.29			$	0.52
Diluted - net income	$	0.17			$	0.24			$	0.29			$	0.52
Weighted average number of common shares outstanding:
Basic		45,618				45,897				45,901				45,817
Diluted		46,028				46,166				46,315				46,133

The accompanying notes are an integral part of these condensed consolidated financial statements.

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SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

 

																		Accumulated
		Common								Additional								Other												Total
		Stock								Paid-In				Retained				Comprehensive				Treasury Stock								Stockholders’
(In thousands)		Shares				Amount				Capital				Earnings				Income				Shares				Amount				Equity
Balance at October 31, 2022			74,935			$	75			$	280,420			$	508,447			$	73				29,040			$	(422,375	)		$	366,640
Stock-based compensation			—				—				1,253				—				—				—				—				1,253
Issuance of common stock under restricted   stock unit awards, net of shares   surrendered			3				—				(14	)			—				—				—				—				(14	)
Dividends issued			—				—				—				(4,590	)			—				—				—				(4,590	)
Net income			—				—			—					11,079				—				—				—				11,079
Balance at January 31, 2023			74,938			$	75			$	281,659			$	514,936			$	73				29,040			$	(422,375	)		$	374,368
Balance at April 30, 2022			74,641			$	75			$	278,101			$	504,640			$	73				29,040			$	(422,375	)		$	360,514
Stock-based compensation			—				—				3,859				—				—				—				—				3,859
Shares issued under employee   stock purchase plan			85				—				753				—				—				—				—				753
Issuance of common stock under restricted   stock unit awards, net of shares   surrendered			212				—				(1,054	)			—				—				—				—				(1,054	)
Dividends issued		—				—				—					(13,744	)		—				—				—					(13,744	)
Net income			—				—			—					24,039				—				—				—				24,039
Balance at January 31, 2023			74,938			$	75			$	281,659			$	514,936			$	73				29,040			$	(422,375	)		$	374,368
Balance at October 31, 2023			75,323			$	75			$	286,341			$	517,682			$	73				29,686			$	(430,669	)		$	373,502
Stock-based compensation			—				—				1,504				—				—				—				—				1,504
Issuance of common stock under restricted   stock unit awards, net of shares   surrendered			3				—				(18	)			—				—				—				—				(18	)
Repurchase of treasury stock		—				—				—				—				—					71				(925	)			(925	)
Unpaid dividends accrued			—				—				—				(37	)			—				—				—				(37	)
Dividends issued		—				—					—				(5,477	)		—				—				—					(5,477	)
Net income			—				—			—					7,882				—				—				—				7,882
Balance at January 31, 2024			75,326			$	75			$	287,827			$	520,050			$	73				29,757			$	(431,594	)		$	376,431
Balance at April 30, 2023			75,029			$	75			$	283,666			$	523,184			$	73				29,040			$	(422,375	)		$	384,623
Stock-based compensation			—				—				4,264				—				—				—				—				4,264
Shares issued under employee   stock purchase plan			83								722				—				—				—				—				722
Issuance of common stock under restricted    stock unit awards, net of shares    surrendered			214				—				(825	)			—				—				—				—				(825	)
Repurchase of treasury stock		—				—				—				—				—					717				(9,219	)			(9,219	)
Unpaid dividends accrued			—				—				—				(76	)			—				—				—				(76	)
Dividends issued		—				—				—					(16,557	)		—				—				—					(16,557	)
Net income			—				—			—					13,499				—				—				—				13,499
Balance at January 31, 2024			75,326			$	75			$	287,827			$	520,050			$	73				29,757			$	(431,594	)		$	376,431

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

		For the Nine Months Ended January 31,
		2024				2023
		(In thousands)
Cash flows from operating activities:
Net income		$	13,499			$	24,039
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization			24,291				21,795
Loss/(gain) on sale/disposition of assets			785				(43	)
Provision for recoveries on notes and accounts receivable			(23	)			(1	)
Stock-based compensation expense			4,264				3,859
Changes in operating assets and liabilities:
Accounts receivable			(5,471	)			4,444
Inventories			23,589				(56,767	)
Prepaid expenses and other current assets			(4,103	)			(384	)
Income taxes			(6,079	)			(8,220	)
Accounts payable			11,230				134
Accrued payroll and incentives			1,332				1,073
Accrued profit sharing			(4,730	)			(5,737	)
Accrued expenses and deferred revenue			3,917				(4,078	)
Accrued warranty			440				(156	)
Other assets			565				1,158
Other non-current liabilities			(383	)			(2,364	)
Net cash provided by/(used in) operating activities			63,123				(21,248	)
Cash flows from investing activities:
Payments to acquire patents and software			(164	)			(251	)
Proceeds from sale of property and equipment			2,877				85
Payments to acquire property and equipment			(85,188	)			(64,586	)
Net cash used in investing activities			(82,475	)			(64,752	)
Cash flows from financing activities:
Proceeds from loans and notes payable			50,000				25,000
Payments on notes and loans payable			(10,000	)			(231	)
Payments on finance lease obligation			(1,049	)			(856	)
Payments to acquire treasury stock			(9,128	)			—
Dividend distribution			(16,557	)			(13,744	)
Proceeds to acquire common stock from employee stock purchase plan			722				753
Payment of employee withholding tax related to    restricted stock units			(825	)			(1,054	)
Net cash provided by financing activities			13,163				9,868
Net decrease in cash and cash equivalents			(6,189	)			(76,132	)
Cash and cash equivalents, beginning of period			53,556				120,728
Cash and cash equivalents, end of period		$	47,367			$	44,596
Supplemental disclosure of cash flow information
Cash paid for:
Interest, net of amounts capitalized		$	3,317			$	1,743
Income taxes		$	10,687			$	15,775

The accompanying notes are an integral part of these condensed consolidated financial statements.

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Supplemental Disclosure of Non-cash Investing Activities:

 

		For the Nine Months Ended January 31,
		2024				2023
		(In thousands)
Purchases of property and equipment included in accounts payable		$	3,883			$	7,994
Capital lease included in accrued expenses and finance lease payable		$	653			—

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

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

Overview

Please refer to the Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2023 Annual Report and our unaudited condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q. This section sets forth key objectives and performance indicators used by us as well as key industry data tracked by us.

Third Quarter Fiscal 2024 Highlights

Our operating results for the three months ended January 31, 2024 included the following:

Our operating results for the nine months ended January 31, 2024 included the following:

During the nine months ended January 31, 2024, we purchased 716,869 shares of our common stock for $9.1 million, utilizing cash on hand.

 

Results of Operations

Net Sales and Gross Profit – For the Three Months Ended January 31, 2024

The following table sets forth certain information regarding net sales and gross profit for the three months ended January 31, 2024 and 2023 (dollars in thousands):

 

	2024				2023				$ Change				% Change
Handguns	$	94,451			$	101,952			$	(7,501	)			-7.4	%
Long Guns		32,236				15,312				16,924				110.5	%
Other Products & Services		10,797				11,772				(975	)			-8.3	%
Total net sales	$	137,484			$	129,036			$	8,448				6.5	%
Cost of sales		98,060				87,195				10,865				12.5	%
Gross profit	$	39,424			$	41,841			$	(2,417	)			-5.8	%
% of net sales (gross margin)		28.7	%			32.4	%

 

The following table sets forth certain information regarding firearm units shipped by trade channel for the three months ended January 31, 2024 and 2023 (units in thousands):

 

Total Units Shipped		2024				2023				# Change				% Change
Handguns			219				223				(4	)		-1.8%
Long Guns			63				32				31			96.9%
Sporting Goods Channel Units Shipped		2024				2023				# Change				% Change
Handguns			199				207				(8	)		-3.9%
Long Guns			60				30				30			100.0%
Professional Channel Units Shipped		2024				2023				# Change				% Change
Handguns			20				16				4			25.0%
Long Guns			3				2				1			50.0%

 

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Sales of our handguns decreased $7.5 million, or 7.4%, from the comparable quarter last year, primarily due to lower demand for several of our older handgun products and certain products that were introduced in the prior year, partially offset by increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable quarter last year), which represented 17.2% of handgun sales in the period, the impact of targeted promotions on certain polymer frame pistols, and a 2%-5% price increase on select products that became effective in the quarter. Handgun unit shipments into the sporting goods channel decreased by 3.9% from the comparable quarter last year while overall consumer handgun demand decreased 3.5% (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS).

Sales of our long guns increased $16.9 million, or 110.5%, over the comparable quarter last year, primarily due to increased shipments of newly introduced products, which represented 35.7% of long gun sales in the period, as well as a 3% price increase on select products that became effective in the quarter. Long gun unit shipments into our sporting goods channel increased 100.0% over the comparable quarter last year while overall consumer demand for long guns increased 4.8% (as indicated by NICS).

Other products and services revenue decreased $975,000, or 8.3%, from the comparable quarter last year, primarily because of decreased sales of component parts and decreased licensing revenue, partially offset by increased sales of handcuffs.

Newly introduced products represented 20.2% of sales for the three months ended January 31, 2024 and included one new pistol, two new long guns, and many new product line extensions.

Gross margin for the three months ended January 31, 2024 was 28.7% compared with 32.4% for the comparable quarter last year, primarily because of an increase in overhead relating to operating manufacturing facilities in both Massachusetts and Tennessee, inefficiencies related to the start-up of operations in Tennessee, the impact of inflation on raw materials and finished parts, which increased approximately 5.8% over the prior year comparable quarter, the impact of inflation on labor costs (particularly as it relates to entry level positions), partially offset by the impact of higher sales volume, decreased Relocation spend, and a price increase that became effective during the quarter.

Inventory balances decreased $23.6 million between April 30, 2023 and January 31, 2024. While inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results, it is difficult to forecast the potential impact of distributor inventories on future revenue and income as demand is impacted by many factors, including seasonality, new product introductions, news events, political events, and consumer tastes. We expect our inventory levels will remain relatively flat during our fourth fiscal quarter.

Net Sales and Gross Profit – For the Nine Months Ended January 31, 2024

The following table sets forth certain information regarding net sales and gross profit for the nine months ended January 31, 2024 and 2023 (dollars in thousands):

		2024				2023				$ Change				% Change
Handguns		$	268,903			$	254,356			$	14,547				5.7	%
Long Guns			79,139				46,416				32,723				70.5	%
Other Products & Services			28,644				33,693				(5,049	)			-15.0	%
Total net sales		$	376,686			$	334,465			$	42,221				12.6	%
Cost of sales			275,094				221,890				53,204				24.0	%
Gross profit		$	101,592			$	112,575			$	(10,983	)			-9.8	%
% of net sales (gross margin)			27.0	%			33.7	%

 

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The following table sets forth certain information regarding firearm units shipped by trade channel for the nine months ended January 31, 2024 and 2023 (units in thousands):

Total Units Shipped		2024				2023				# Change				% Change
Handguns			584				560				24			4.3%
Long Guns			159				90				69			76.7%
Sporting Goods Channel Units Shipped		2024				2023				# Change				% Change
Handguns			538				514				24			4.7%
Long Guns			146				82				64			78.0%
Professional Channel Units Shipped		2024				2023				# Change				% Change
Handguns			46				46				-			0.0%
Long Guns			13				8				5			62.5%

Sales of our handguns increased $14.5 million, or 5.7%, over the prior year comparable period. The increase in sales was primarily due to increased shipments of our revolvers, increased shipments of newly introduced products, which represented 22.7% of handgun sales in the period, the impact of targeted promotions on certain polymer frame pistols, a 5% price increase on select products that became effective in the second quarter of fiscal 2023, and a 2%-5% price increase on select products that became effective in January 2024. Handgun unit shipments into the sporting goods channel increased by 4.7% over the comparable period last year while overall consumer handgun demand decreased 8.1% (as indicated by NICS).

Sales of our long guns increased $32.7 million, or 70.5%, over the prior year comparable period, primarily due to increased shipments of newly introduced products, which represented 51.0% of long gun sales in the period, as well as a price increase on select products that became effective in January 2024. Long gun unit shipments into our sporting goods channel increased 78.0% over the comparable period last year while overall consumer demand for long guns decreased 2.1% (as indicated by NICS).

Other products and services revenue decreased $5.0 million, or 15.0%, from the prior year comparable period, primarily because of decreased sales of component parts, decreased business-to-business services, and decreased licensing revenue, partially offset by increased sales of handcuffs.

Newly introduced products represented 26.9% of sales for the nine months ended January 31, 2024 and included six new pistols, four new long guns, and many new product line extensions.

Gross margin for the nine months ended January 31, 2024 was 27.0% compared with 33.7% for the comparable period last year primarily because of a combination of unfavorable fixed-cost absorption (due to lower production volume), the impact of an accrued legal settlement for $3.2 million, the impact of inflation on raw materials and finished parts, which increased approximately 5.1% over the prior year comparable period, the impact of inflation on labor costs (particularly as it relates to entry level positions), and unfavorable inventory reserve adjustments, including capitalized variances, partially offset by the impact of decreased Relocation spend and favorable mix associated with newly introduced products.

Operating Expenses

The following table sets forth certain information regarding operating expenses for the three months ended January 31, 2024 and 2023 (dollars in thousands):

	2024				2023				$ Change				% Change
Research and development	$	1,969			$	2,133			$	(164	)			-7.7	%
Selling, marketing, and distribution		10,108				9,996				112				1.1	%
General and administrative		16,065				15,576				489				3.1	%
Total operating expenses	$	28,142			$	27,705			$	437				1.6	%
% of net sales		20.5	%			21.5	%

Research and development expenses decreased $164,000 from the prior year comparable quarter, primarily because of decreased sample and testing costs associated with new product development. Selling, marketing, and distribution expenses increased $112,000 over the prior year comparable quarter, primarily as a result of increased costs associated with the Relocation and increased depreciation expense, partially offset by decreased spend on targeted customer promotions and decreased advertising costs. General and administrative expenses increased $489,000 over the prior year comparable quarter, primarily because of increased legal-related expenses and depreciation expense, partially offset by decreased Relocation costs. Current year general and administrative expenses

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were also lower than the prior year comparable quarter due to a change in where the sublease-related income is recorded. During the three months ended January, 31, 2024, sublease-related income of $256,000 was recorded in general and administrative expenses whereas, in fiscal 2023 $579,000 was reported in other income/(expense).

The following table sets forth certain information regarding operating expenses for the nine months ended January 31, 2024 and 2023 (dollars in thousands):

		2024				2023				$ Change				% Change
Research and development		$	5,492			$	5,675			$	(183	)			-3.2	%
Selling, marketing, and distribution			31,101				27,454				3,647				13.3	%
General and administrative			45,599				48,867				(3,268	)			-6.7	%
Total operating expenses		$	82,192			$	81,996			$	196				0.2	%
% of net sales			21.8	%			24.5	%

Research and development expenses decreased $183,000 from the prior year comparable period, primarily because of decreased sample and testing costs associated with new product development. Selling, marketing, and distribution expenses increased $3.6 million over the prior year comparable period, primarily as a result of a $1.9 million impairment on distribution equipment related to the Relocation, one-time costs related to the grand opening event at our new Tennessee facility, increased compensation-related costs, and increased spend on targeted customer promotions, partially offset by decreased digital advertising costs and decreased sample costs. General and administrative expenses decreased $3.3 million from the prior year comparable period, primarily because of a $1.2 million decrease in compensation-related expenses and decreased Relocation costs. During the nine months ended January, 31, 2024, sublease-related income of $1.2 million was recorded in general and administrative expenses whereas, in fiscal 2023 $1.7 million was reported in other income/(expense).

Operating Income

The following table sets forth certain information regarding operating income for the three months ended January 31, 2024 and 2023 (dollars in thousands):

	2024				2023				$ Change				% Change
Operating income	$	11,282			$	14,136			$	(2,854	)			-20.2	%
% of net sales (operating margin)		8.2	%			11.0	%

 

Operating income for the three months ended January 31, 2024 decreased $2.9 million from the comparable quarter last year, primarily because of the increase in overhead relating to operating manufacturing facilities in both Massachusetts and Tennessee, as well as inefficiencies related to the start-up of operations in Tennessee, increased legal-related costs, and increased depreciation expense, partially offset by decreased costs on targeted customer promotions and increased sales volumes.

The following table sets forth certain information regarding operating income for the nine months ended January 31, 2024 and 2023 (dollars in thousands):

		2024				2023				$ Change				% Change
Operating income		$	19,400			$	30,579			$	(11,179	)			-36.6	%
% of net sales (operating margin)			5.2	%			9.1	%

Operating income for the nine months ended January 31, 2024 decreased $11.2 million from the prior year comparable period, primarily because of unfavorable fixed-cost absorption, unfavorable inventory reserve adjustments (including amortization of capitalized variances), the impact of an accrued legal settlement for $3.2 million, a $1.9 million impairment on distribution equipment related to the Relocation, increased costs on targeted customer promotions, and costs associated with the grand opening of the new Tennessee facility, partially offset by increased sales volumes, decreased Relocation spend and decreased digital advertising costs.

Income Taxes

The following table sets forth certain information regarding income tax expense for the three months ended January 31, 2024 and 2023 (dollars in thousands):

	2024				2023				$ Change				% Change
Income tax expense	$	2,434			$	3,389			$	(955	)			-28.2	%
% of income from operations (effective tax rate)		23.6	%			23.4	%							0.2	%

 

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Income tax expense decreased $955,000 from the comparable quarter last year as a result of lower operating income.

The following table sets forth certain information regarding income tax expense for the nine months ended January 31, 2024 and 2023 (dollars in thousands):

		2024				2023				$ Change				% Change
Income tax expense		$	4,629			$	7,483			$	(2,854	)			-38.1	%
% of income from operations (effective tax rate)			25.5	%			23.7	%							1.8	%

Income tax expense decreased $2.9 million from the prior year comparable period as a result of lower operating income.

Net Income

The following table sets forth certain information regarding net income and the related per share data for the three months ended January 31, 2024 and 2023 (dollars in thousands, except per share data):

	2024				2023				$ Change				% Change
Net income	$	7,882			$	11,079			$	(3,197	)			-28.9	%
Net income per share
Basic	$	0.17			$	0.24			$	(0.07	)			-29.2	%
Diluted	$	0.17			$	0.24			$	(0.07	)			-29.2	%

Net income for the three months ended January 31, 2024 was $7.9 million compared with $11.1 million for the comparable quarter last year for the reasons outlined above.

The following table sets forth certain information regarding net income and the related per share data for the nine months ended January 31, 2024 and 2023 (dollars in thousands, except per share data):

		2024				2023				$ Change				% Change
Net income		$	13,499			$	24,039			$	(10,540	)			-43.8	%
Net income per share
Basic		$	0.29			$	0.52			$	(0.23	)			-44.2	%
Diluted		$	0.29			$	0.52			$	(0.23	)			-44.2	%

Net income for the nine months ended January 31, 2024 was $13.5 million compared with $24.0 million for the prior year comparable period for the reasons outlined above.

Liquidity and Capital Resources

Our principal cash requirements are to (1) finance the growth of our operations, including working capital and capital expenditures, (2) fund the Relocation, and (3) return capital to stockholders. Capital expenditures for the Relocation, new product development, and repair and replacement of equipment represent important cash needs.

The following table sets forth certain cash flow information for the nine months ended January 31, 2024 and 2023 (dollars in thousands):

		2024				2023				$ Change				% Change
Operating activities		$	63,123			$	(21,248	)		$	84,371				397.1	%
Investing activities			(82,475	)			(64,752	)			(17,723	)			-27.4	%
Financing activities			13,163				9,868				3,295				33.4	%
Total cash flow		$	(6,189	)		$	(76,132	)		$	69,943				-91.9	%

 

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Operating Activities

On an annual basis, operating activities generally represent the principal source of our cash flows. Cash provided by operating activities was $63.1 million for the nine months ended January 31, 2024 compared with $21.2 million of cash used for the nine months ended January 31, 2023. Cash provided by operating activities for the nine months ended January 31, 2024 was favorably impacted by a $23.6 million decrease in inventory versus a $56.8 million increase in inventory in the prior comparable period. Partially offsetting this was a $5.5 million increase in accounts receivable versus a $4.4 million decrease in accounts receivable in the prior comparable period due to increased sales volume.

Investing Activities

Cash used in investing activities increased $17.7 million for the nine months ended January 31, 2024 compared with the prior year comparable period. We paid $85.2 million for capital expenditures for the nine months ended January 31, 2024, $20.6 million higher than the prior year comparable period primarily due to payments related to the Relocation. Excluding payments related to the Relocation, we expect to spend between $20.0 million and $25.0 million on capital expenditures in fiscal 2024.

We expect to spend between $75.0 million and $80.0 million on capital expenditures in fiscal 2024, of which $50.0 million to $55.0 million related to the construction of the Tennessee facility, most of which has been capitalized.

Financing Activities

Cash provided by financing activities was $13.2 million for the nine months ended January 31, 2024 compared with $9.9 million for the nine months ended January 31, 2023. Cash provided by financing activities during the nine months ended January 31, 2024 was primarily the result of a net $40 million in borrowings under our revolving line of credit, partially offset by $16.6 million in dividend distributions and $9.1 million of share repurchases. For the nine months ended January 31, 2023, cash provided by financing activities was primarily the result of $25 million in borrowings under our revolving line of credit, partially offset by $13.7 million in dividend distributions.

Finance Lease – We are a party to a material finance lease, the Missouri Lease which is a $46.2 million lease for the Missouri Distribution Center that has an effective interest rate of approximately 5.0% and is payable in 240 monthly installments through fiscal 2039. The building is pledged to secure the amounts outstanding. During fiscal 2024, we paid approximately $559,000 in principal payments relating to the Missouri Lease. With the completion of the Separation, we entered into the Missouri Sublease. On July 16, 2022, we entered into an amendment to the Missouri Sublease, increasing the subleased space to 64.7% of the Missouri Distribution Center under the same terms as the Missouri Lease. On January 31, 2023, we entered into the Assignment and Assumption Agreement and the Amended and Restated Guaranty, which became effective January 1, 2024. We terminated the Missouri Sublease on January 1, 2024. Through the nine months ended January 31, 2024, we recorded $1.9 million of income related to the Missouri Sublease, of which $944,000 was recorded in general and administrative expenses and $924,000 was recorded in interest income in our condensed consolidated statements of income.

Credit Facilities — We maintain an unsecured revolving line of credit with TD Bank, N.A. and other lenders, or the Lenders, which includes availability up to $100.0 million at any one time, or the Revolving Line. The Revolving Line provides for availability for general corporate purposes, with borrowings to bear interest at either the Base Rate or SOFR rate, plus an applicable margin based on our consolidated leverage ratio, as of January 31, 2024. The credit agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line). Each Swingline Loan bears interest at the Base Rate, plus an applicable margin based on our consolidated leverage ratio. In response to a Springing Lien Triggering Event (as defined in the credit agreement), we would be required to enter into certain documents that create in favor of TD Bank, N.A., as administrative agent, and the lenders party to such documents as legal, valid, and enforceable first priority lien on the collateral described therein. Subject to the satisfaction of certain terms and conditions described in the credit agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million. The Revolving Line matures on the earlier of August 24, 2025, or the date that is six months in advance of the earliest maturity of any permitted notes under the credit agreement. On April 28, 2023, we entered into an amendment to our existing credit agreement to, among other things, replace LIBOR with SOFR as the interest rate benchmark and amend the definition of “Consolidated Fixed Charge Coverage Ratio” to exclude unfinanced capital expenditures in connection with the Relocation.

As of January 31, 2024, we had $65.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.20%, which was equal to the SOFR rate plus an applicable margin.

The credit agreement for our credit facility contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. We were in compliance with all debt covenants as of January 31, 2024.

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Share Repurchase Programs — On September 19, 2023, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024. During the nine months ended January 31, 2024, we repurchased 716,869 shares of our common stock for $9.1 million under this authorization. There were no common stock purchases through the nine months ended January 31, 2023, nor were there any unfulfilled authorizations.

Dividends — In April 2023, our Board of Directors authorized a regular quarterly dividend for stockholders of $0.12 per share, subject to Audit Committee confirmation. The current dividend will be for stockholders of record as of market close on March 21, 2024 and will be payable on April 4, 2024.

Our future capital requirements will depend on many factors, including net sales, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, the costs to ensure access to adequate manufacturing capacity, and costs related to the Relocation. Further equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of unexpected business opportunities or to respond to competitive pressures could be limited or severely constrained.

As of January 31, 2024, we had $47.4 million in cash and cash equivalents on hand. Based upon our current working capital position, current operating plans, and expected business conditions, we believe that our existing capital resources and credit facilities will be adequate to fund our operations, including our finance leases and other commitments, for the next 12 months.

Other Matters

Critical Accounting Policies

The preparation of condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant accounting policies are disclosed in Note 2 of the Notes to the Consolidated Financial Statements in our Fiscal 2023 Annual Report. The most significant areas involving our judgments and estimates are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Fiscal 2023 Annual Report, to which there have been no material changes. Actual results could differ from our estimates.

Recent Accounting Pronouncements

The nature and impact of recent accounting pronouncements, if any, is discussed in Note 2—Basis of Presentation to our condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

During the period ended January 31, 2024, we did not enter into or transact any forward option contracts nor did we have any forward contracts outstanding.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of January 31, 2024, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act was recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There was no change in our internal control over financial reporting during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings

The nature of legal proceedings against us is discussed in Note 9—Commitments and Contingencies to our condensed consolidated financial statements included elsewhere in this report, which is incorporated herein by reference.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth certain information relating to the purchases of our common stock by us and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) under the Exchange Act during the three months ended January 31, 2024 (dollars in thousands, except per share data):

										Total # of Shares				Maximum Dollar
										Purchased as				Value of Shares
										Part of Publicly				that May Yet Be
		Total # of				Average				Announced				Purchased
		Shares				Price Paid				Plans or				Under the Plans
Period		Purchased				Per Share (2)				Programs (1)				or Programs
December 1 to December 31, 2023			38,581			$	12.76				38,581			$	41,295
January 1 to January 31, 2024			32,518				13.00				32,518				40,872
Total			71,099			$	12.86				71,099			$	40,872

 

Item 5. Other Information

Rule 10b5-1 Trading Plans

During the three months ended January 31, 2024, none of our directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a “non-Rule 10b5-1 trading arrangement” (in each case, as defined in Item 408 of Regulation S-K).

Item 6. Exhibits

The exhibits listed on the Index to Exhibits (immediately preceding the signatures section of this Quarterly Report on Form 10-Q) are included herewith or incorporated herein by reference.

 

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INDEX TO EXHIBITS

 

 

31.1		Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer
31.2		Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer
32.1		Section 1350 Certification of Principal Executive Officer
32.2		Section 1350 Certification of Principal Executive officer
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		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

 

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SIGNATURES

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 thereunto duly authorized.

 

		SMITH & WESSON BRANDS, INC. a Nevada corporation
Date: March 7, 2024		By:		/s/ Mark P. Smith
				Mark P. Smith
				President and Chief Executive Officer

 

Date: March 7, 2024		By:		/s/ Deana L. McPherson
				Deana L. McPherson
				Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary

 

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Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Mark P. Smith, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Smith & Wesson Brands, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

By:		/s/ Mark P. Smith
		Mark P. Smith
		President and Chief Executive Officer

Date: March 7, 2024

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Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Deana L. McPherson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Smith & Wesson Brands, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

By:		/s/ Deana L. McPherson
		Deana L. McPherson
		Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary

Date: March 7, 2024

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Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Smith & Wesson Brands, Inc. (the “Company”) for the quarterly period ended January 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark P. Smith, President and Chief Executive Officer of the Company, certify, to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:		/s/ Mark P. Smith
		Mark P. Smith
		President and Chief Executive Officer

Date: March 7, 2024

This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Smith & Wesson Brands, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

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Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Smith & Wesson Brands, Inc. (the “Company”) for the quarterly period ended January 31, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Deana L. McPherson, Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary of the Company, certify, to the best of my knowledge and belief, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(i) The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:		/s/ Deana L. McPherson
		Deana L. McPherson
		Executive Vice President, Chief Financial Officer, Treasurer, and Assistant Secretary

Date: March 7, 2024

This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission, and is not to be incorporated by reference into any filing of Smith & Wesson Brands, Inc. under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Quarterly Report on Form 10-Q), irrespective of any general incorporation language contained in such filing.

 

---

v3.24.0.1

Document and Entity Information - shares	9 Months Ended
	Jan. 31, 2024	Mar. 05, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Registrant Name	Smith & Wesson Brands, Inc.
Entity Central Index Key	0001092796
Current Fiscal Year End Date	--04-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-31552
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	87-0543688
Entity Address, Address Line One	2100 Roosevelt Avenue
Entity Address, City or Town	Springfield
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01104
City Area Code	800
Local Phone Number	331-0852
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		45,516,776
Title of each Class	Common Stock, par value $0.001 per share
Trading Symbol	SWBI
Name of exchange on which registered	NASDAQ

v3.24.0.1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Current assets:
Cash and cash equivalents	$ 47,367	$ 53,556
Accounts receivable, net of allowances for credit losses of $0 on January 31, 2024 and $23 on April 30, 2023	60,647	55,153
Inventories	153,529	177,118
Prepaid expenses and other current assets	9,020	4,917
Income tax receivable	5,613	1,176
Total current assets	276,176	291,920
Property, plant, and equipment, net	256,830	210,330
Intangibles, net	2,670	3,588
Goodwill	19,024	19,024
Deferred income taxes	8,085	8,085
Other assets	7,781	8,347
Total assets	570,566	541,294
Current liabilities:
Accounts payable	36,141	36,795
Accrued expenses and deferred revenue	24,333	20,149
Accrued payroll and incentives	19,897	18,565
Accrued income taxes	190	1,831
Accrued profit sharing	3,473	8,203
Accrued warranty	2,110	1,670
Total current liabilities	86,144	87,213
Notes and loans payable (Note 4)	64,858	24,790
Finance lease payable, net of current portion	35,809	36,961
Other non-current liabilities	7,324	7,707
Total liabilities	194,135	156,671
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 75,325,786 issued and 45,568,550 shares outstanding on January 31, 2024 and 75,029,300 shares issued and 45,988,930 shares outstanding on April 30, 2023	75	75
Additional paid-in capital	287,827	283,666
Retained earnings	520,050	523,184
Accumulated other comprehensive income	73	73
Treasury stock, at cost (29,757,239 shares on January 31, 2024 and 29,040,370 on April 30, 2023)	(431,594)	(422,375)
Total stockholders’ equity	376,431	384,623
Total liabilities and stockholders' equity	$ 570,566	$ 541,294

v3.24.0.1

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Statement of Financial Position [Abstract]
Allowances for credit losses	$ 0	$ 23
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	75,325,789	75,029,300
Common stock, shares outstanding	45,568,550	45,988,930
Treasury Stock, Common, Shares	29,757,239	29,040,370

v3.24.0.1

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Income Statement [Abstract]
Net sales	$ 137,484	$ 129,036	$ 376,686	$ 334,465
Cost of sales	98,060	87,195	275,094	221,890
Gross profit	39,424	41,841	101,592	112,575
Operating expenses:
Research and development	1,969	2,133	5,492	5,675
Selling, marketing, and distribution	10,108	9,996	31,101	27,454
General and administrative	16,065	15,576	45,599	48,867
Total operating expenses	28,142	27,705	82,192	81,996
Operating income	11,282	14,136	19,400	30,579
Other income/(expense), net:
Other income/(expense), net	(11)	840	176	2,304
Interest (expense)/income, net	(955)	(508)	(1,448)	(1,361)
Total other (expense)/income, net	(966)	332	(1,272)	943
Income from operations before income taxes	10,316	14,468	18,128	31,522
Income tax expense	2,434	3,389	4,629	7,483
Net income	$ 7,882	$ 11,079	$ 13,499	$ 24,039
Net income per share:
Basic - net income	$ 0.17	$ 0.24	$ 0.29	$ 0.52
Diluted - net income	$ 0.17	$ 0.24	$ 0.29	$ 0.52
Weighted average number of common shares outstanding:
Basic	45,618	45,897	45,901	45,817
Diluted	46,028	46,166	46,315	46,133

v3.24.0.1

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss)/Income	Treasury Stock
Balance at Apr. 30, 2022	$ 360,514	$ 75	$ 278,101	$ 504,640	$ 73	$ (422,375)
Balance (in shares) at Apr. 30, 2022		74,641,000
Treasury stock (in shares) at Apr. 30, 2022						29,040,000
Stock-based compensation	3,859		3,859
Shares issued under employee stock purchase plan	753		753
Shares issued under employee stock purchase plan (in shares)		85,000
Issuance of common stock under restricted stock unit awards, net of shares surrendered	(1,054)		(1,054)
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares)		212,000
Dividends issued	(13,744)			(13,744)
Net income	24,039			24,039
Balance at Jan. 31, 2023	374,368	$ 75	281,659	514,936	73	$ (422,375)
Balance (in shares) at Jan. 31, 2023		74,938,000
Treasury stock (in shares) at Jan. 31, 2023						29,040,000
Balance at Oct. 31, 2022	366,640	$ 75	280,420	508,447	73	$ (422,375)
Balance (in shares) at Oct. 31, 2022		74,935,000
Treasury stock (in shares) at Oct. 31, 2022						29,040,000
Stock-based compensation	1,253		1,253
Issuance of common stock under restricted stock unit awards, net of shares surrendered	(14)		(14)
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares)		3,000
Dividends issued	(4,590)			(4,590)
Net income	11,079			11,079
Balance at Jan. 31, 2023	374,368	$ 75	281,659	514,936	73	$ (422,375)
Balance (in shares) at Jan. 31, 2023		74,938,000
Treasury stock (in shares) at Jan. 31, 2023						29,040,000
Balance at Apr. 30, 2023	$ 384,623	$ 75	283,666	523,184	73	$ (422,375)
Balance (in shares) at Apr. 30, 2023	45,988,930	75,029,000
Treasury stock (in shares) at Apr. 30, 2023	29,040,370					29,040,000
Stock-based compensation	$ 4,264		4,264
Shares issued under employee stock purchase plan	722		722
Shares issued under employee stock purchase plan (in shares)		83,000
Issuance of common stock under restricted stock unit awards, net of shares surrendered	(825)		(825)
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares)		214,000
Repurchase of treasury stock	(9,219)					$ (9,219)
Repurchase of treasury stock, shares						717,000
Dividends issued	(16,557)			(16,557)
Unpaid dividends accrued	(76)			(76)
Net income	13,499			13,499
Balance at Jan. 31, 2024	$ 376,431	$ 75	287,827	520,050	73	$ (431,594)
Balance (in shares) at Jan. 31, 2024	45,568,550	75,326,000
Treasury stock (in shares) at Jan. 31, 2024	29,757,239					29,757,000
Balance at Oct. 31, 2023	$ 373,502	$ 75	286,341	517,682	73	$ (430,669)
Balance (in shares) at Oct. 31, 2023		75,323,000
Treasury stock (in shares) at Oct. 31, 2023						29,686,000
Stock-based compensation	1,504		1,504
Issuance of common stock under restricted stock unit awards, net of shares surrendered	(18)		(18)
Issuance of common stock under restricted stock unit awards, net of shares surrendered (in shares)		3,000
Repurchase of treasury stock	(925)					$ (925)
Repurchase of treasury stock, shares						(71,000)
Dividends issued	(5,477)			(5,477)
Unpaid dividends accrued	(37)			(37)
Net income	7,882			7,882
Balance at Jan. 31, 2024	$ 376,431	$ 75	$ 287,827	$ 520,050	$ 73	$ (431,594)
Balance (in shares) at Jan. 31, 2024	45,568,550	75,326,000
Treasury stock (in shares) at Jan. 31, 2024	29,757,239					29,757,000

v3.24.0.1

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023
Cash flows from operating activities:
Net income	$ 13,499	$ 24,039
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
Depreciation and amortization	24,291	21,795
Loss/(gain) on sale/disposition of assets	785	(43)
Provision for recoveries on notes and accounts receivable	(23)	(1)
Stock-based compensation expense	4,264	3,859
Changes in operating assets and liabilities:
Accounts receivable	(5,471)	4,444
Inventories	23,589	(56,767)
Prepaid expenses and other current assets	(4,103)	(384)
Income taxes	(6,079)	(8,220)
Accounts payable	11,230	134
Accrued payroll and incentives	1,332	1,073
Accrued profit sharing	(4,730)	(5,737)
Accrued expenses and deferred revenue	3,917	(4,078)
Accrued warranty	440	(156)
Other assets	565	1,158
Other non-current liabilities	(383)	(2,364)
Net cash provided by/(used in) operating activities	63,123	(21,248)
Cash flows from investing activities:
Payments to acquire patents and software	(164)	(251)
Proceeds from sale of property and equipment	2,877	85
Payments to acquire property and equipment	(85,188)	(64,586)
Net cash used in investing activities	(82,475)	(64,752)
Cash flows from financing activities:
Proceeds from loans and notes payable	50,000	25,000
Payments on notes and loans payable	(10,000)	(231)
Payments on finance lease obligation	(1,049)	(856)
Payments to acquire treasury stock	(9,128)	0
Dividend distribution	(16,557)	(13,744)
Proceeds to acquire common stock from employee stock purchase plan	722	753
Payment of employee withholding tax related to restricted stock units	(825)	(1,054)
Net cash provided by financing activities	13,163	9,868
Net decrease in cash and cash equivalents	(6,189)	(76,132)
Cash and cash equivalents, beginning of period	53,556	120,728
Cash and cash equivalents, end of period	47,367	44,596
Supplemental disclosure of cash flow information Cash paid for:
Interest, net of amounts capitalized	3,317	1,743
Income taxes	10,687	15,775
Supplemental Disclosure of Non-cash Investing Activities:
Purchases of property and equipment included in accounts payable	3,883	7,994
Capital lease included in accrued expenses and finance lease payable	$ 653	$ 0

v3.24.0.1

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 7,882	$ 11,079	$ 13,499	$ 24,039

v3.24.0.1

Insider Trading Arrangements	3 Months Ended
	Jan. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.0.1

Organization	9 Months Ended
	Jan. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	(1) Organization: We are one of the world’s leading manufacturers and designers of firearms. We manufacture a wide array of handguns (including revolvers and pistols), long guns (including modern sporting rifles), handcuffs, firearm suppressors, and other firearm-related products for sale to a wide variety of customers, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals desiring home and personal protection, law enforcement and security agencies and officers, and military agencies in the United States and throughout the world. We sell our products under the Smith & Wesson and Gemtech brands. We manufacture our products at our facilities in Springfield, Massachusetts; Houlton, Maine; Deep River, Connecticut; and Maryville, Tennessee. We also sell our manufacturing services to other businesses to attempt to level-load our factories. We sell those services under our Smith & Wesson and Smith & Wesson Precision Components brands. During the nine months ended January 31, 2024, we began manufacturing and distribution activities from our new Maryville, Tennessee facility. See Note 9 — Commitments and Contingencies and Note 10 — Restructuring for more information regarding this plan.

v3.24.0.1

Basis of Presentation	9 Months Ended
	Jan. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	(2) Basis of Presentation: Interim Financial Information – The condensed consolidated balance sheet as of January 31, 2024, the condensed consolidated statements of income for the three and nine months ended January 31, 2024 and 2023, the condensed consolidated statements of changes in stockholders’ equity for the three and nine months ended January 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2024 and 2023 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows for the three and nine months ended January 31, 2024 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2023 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Fiscal 2023 Form 10-K. The results of operations for the three and nine months ended January 31, 2024 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2024, or any other period.

v3.24.0.1

Leases	9 Months Ended
	Jan. 31, 2024
Leases [Abstract]
Leases	(3) Leases: We lease certain of our real estate, machinery, equipment, and photocopiers under non-cancelable operating and finance lease agreements. We recognize expenses for our operating lease assets and liabilities at the commencement date based on the present value of lease payments over the lease term. Our leases do not provide an implicit interest rate. We use our incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Our lease agreements do not require material variable lease payments or residual value guarantees, nor do they include restrictive covenants. For operating leases, we recognize expense on a straight-line basis over the lease term. Tenant improvement allowances are recorded as an offsetting adjustment included in our calculation of the respective right-of-use asset. Many of our leases include renewal options that enable us to extend the lease term. The execution of those renewal options is at our sole discretion and renewals are reflected in the lease term when they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The amounts of assets and liabilities related to our operating and financing leases as of January 31, 2024 were as follows (in thousands):       Balance Sheet Caption   January 31, 2024   Operating Leases           Right-of-use assets       $ 5,994   Accumulated amortization         (5,068 ) Right-of-use assets, net   Other assets   $ 926               Current liabilities   Accrued expenses and deferred revenue   $ 488   Non-current liabilities   Other non-current liabilities     616   Total operating lease liabilities       $ 1,104   Finance Leases           Right-of-use assets       $ 41,631   Accumulated depreciation         (11,147 ) Right-of-use assets, net   Property, plant, and equipment, net   $ 30,484               Current liabilities   Accrued expenses and deferred revenue   $ 1,531   Non-current liabilities   Finance lease payable, net of current portion     35,809   Total finance lease liabilities       $ 37,340   During the three months ended January 31, 2024, we recorded $375,000 of operating lease costs, of which $28,000 related to short-term leases that were not recorded as right-of-use assets. We recorded $566,000 of finance lease amortization and $470,000 of financing lease interest expense for the three months ended January 31, 2024. As of January 31, 2024, our weighted average lease term and weighted average discount rate for our operating leases was 2.9 years and 4.4%, respectively. As of January 31, 2024, our weighted average lease term and weighted average discount rate for our financing leases were 14.6 years and 5.0%, respectively, and consisted primarily of the facility in Missouri from which we previously operated a distribution center, or the Missouri Distribution Center. The building associated with the Missouri Distribution Center is pledged to secure the amounts outstanding. The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease. On October 26, 2017, we entered into (a) a lease agreement with Ryan Boone County, LLC, or the Original Missouri Landlord, concerning certain real property located in Boone County, Missouri on which we had, until recently, been operating the Missouri Distribution Center, or the Missouri Lease, and (b) a guaranty in favor of the Original Missouri Landlord, or the Guaranty. With the completion of the spin-off of our outdoor products and accessories business on August 24, 2020, or the Separation, we entered into a sublease whereby American Outdoor Brands, Inc., our former wholly owned subsidiary, or AOUT, subleased from us 59.0% of the Missouri Distribution Center under the same terms as the Missouri Lease, or the Missouri Sublease. On July 16, 2022, we entered into an amendment to the Missouri Sublease, increasing the leased space to 64.7% of the Missouri Distribution Center under the same terms as the Missouri Lease. On January 31, 2023, we entered into (i) an assignment and assumption agreement with AOUT, pursuant to which, on January 1, 2024 AOUT assumed all of our rights, entitlement, and obligations in, to, and under the Missouri Lease, and (ii) an amended and restated guaranty in favor of RCS-S&W Facility, LLC, as successor in interest to the Original Missouri Landlord, pursuant to which Smith & Wesson Sales Company was added as a guarantor, or the Amended and Restated Guaranty. We terminated the Missouri Sublease as of January 1, 2024. As of January 31, 2024, income related to the Missouri Sublease was $1.9 million, of which $944,000 was recorded in general and administrative expenses and $924,000 was recorded in interest expense, net, in our condensed consolidated statements of income. On January 5, 2024, we entered into an amendment to the lease for our Connecticut facility, pursuant to which we extended its term from May 4, 2024 to January 4, 2025. We intend to occupy the facility through the amended lease termination date. We do not currently believe there are any indications of impairment relating to these right-of-use assets. The following table represents future expected undiscounted cashflows, based on the Assignment and Assumption Agreement with AOUT, to be received on an annual basis for the next five years and thereafter, as of January 31, 2024 (in thousands):   Fiscal   Amount   2024   $ 788   2025     3,180   2026     3,235   2027     3,292   2028     3,350   Thereafter     38,906   Total future receipts     52,751   Less amounts representing interest     (16,065 ) Present value of sublease receipts   $ 36,686   Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands):       Operating     Financing     Total   2024       $ 325     $ 838     $ 1,163   2025         324       3,378       3,702   2026         301       3,433       3,734   2027         272       3,490       3,762   2028         125       3,424       3,549   Thereafter         —       38,906       38,906   Total future lease payments         1,347       53,469       54,816   Less amounts representing interest         (243 )     (16,129 )     (16,372 ) Present value of lease payments         1,104       37,340       38,444   Less current maturities of lease liabilities         (488 )     (1,531 )     (2,019 ) Long-term maturities of lease liabilities       $ 616     $ 35,809     $ 36,425     During the three and nine months ended January 31, 2024, the cash paid for amounts included in the measurement of liabilities and operating cash flows was $1.1 million and $3.5 million, respectively.

v3.24.0.1

Notes, Loans Payable, and Financing Arrangements	9 Months Ended
	Jan. 31, 2024
Debt Disclosure [Abstract]
Notes, Loans Payable, and Financing Arrangements	(4) Notes, Loans Payable, and Financing Arrangements: Credit Facilities — On August 24, 2020, we and certain of our subsidiaries entered into an amended and restated credit agreement, or the Amended and Restated Credit Agreement, with certain lenders, including TD Bank, N.A., as administrative agent; TD Securities (USA) LLC and Regions Bank, as joint lead arrangers and joint bookrunners; and Regions Bank, as syndication agent. The Amended and Restated Credit Agreement is currently unsecured; however, should any Springing Lien Trigger Event (as defined in the Amended and Restated Credit Agreement) occur, we and certain of our subsidiaries would be required to execute certain documents in favor of TD Bank, N.A., as administrative agent, and the lenders party to such documents would have a legal, valid, and enforceable ‎first priority lien on the collateral described therein. The Amended and Restated Credit Agreement provides for a revolving line of credit of $100.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Amended and Restated Credit Agreement) or the SOFR rate, plus an applicable margin based on our consolidated leverage ratio. The Amended and Restated Credit Agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line). Each Swingline Loan (as defined in the Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement). Subject to the satisfaction of certain terms and conditions described in the Amended and Restated Credit Agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million. The Revolving Line matures on the earlier of August 24, 2025 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Amended and Restated Credit Agreement) under the Amended and Restated Credit Agreement. On April 28, 2023, we entered into an amendment to our existing credit agreement to, among other things, replace LIBOR with SOFR as the interest rate benchmark and amend the definition of “Consolidated Fixed Charge Coverage Ratio” to exclude unfinanced capital expenditures in connection with the Relocation. As of January 31, 2024, we had $65.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.20%, which is equal to the SOFR rate plus an applicable margin. As a result of the construction associated with the Relocation, $759,000 of interest has been capitalized for the nine months ended January 31, 2024. The Amended and Restated Credit Agreement contains customary limitations, including limitations on indebtedness, liens, fundamental changes to business or organizational structure, investments, loans, advances, guarantees, and acquisitions, asset sales, dividends, stock repurchases, stock redemptions, and the redemption or prepayment of other debt, and transactions with affiliates. We are also subject to financial covenants, including a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio. As of January 31, 2024, we were compliant with all required financial covenants. Letters of Credit — At January 31, 2024, we had outstanding letters of credit aggregating $2.7 million, which included a $1.5 million letter of credit to collateralize our captive insurance company.

v3.24.0.1

Fair Value Measurement	9 Months Ended
	Jan. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurement	(5) Fair Value Measurement: We follow the provisions of Accounting Standards Codification, or ASC, 820-10, Fair Value Measurements and Disclosures Topic, or ASC 820-10, for our financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements. ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. Financial assets and liabilities recorded on the accompanying condensed consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 — Financial assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that we have the ability to access at the measurement date (e.g., active exchange-traded equity securities, listed derivatives, and most U.S. Government and agency securities). Our cash and cash equivalents, which are measured at fair value on a recurring basis, totaled $47.4 million and $53.6 million as of January 31, 2024 and April 30, 2023, respectively. The carrying value of our revolving line of credit approximated the fair value as of January 31, 2024. We utilized Level 1 of the value hierarchy to determine the fair values of these assets. Level 2 — Financial assets and liabilities whose values are based on quoted prices in markets in which trading occurs infrequently or whose values are based on quoted prices of instruments with similar attributes in active markets. Level 2 inputs include the following: • quoted prices for identical or similar assets or liabilities in non-active markets (such as corporate and municipal bonds which trade infrequently); • inputs other than quoted prices that are observable for substantially the full term of the asset or liability (such as interest rate and currency swaps); and • inputs that are derived principally from or corroborated by observable market data for substantially the full term of the asset or liability (such as certain securities and derivatives). Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our judgments about the assumptions a market participant would use in pricing the asset or liability. We did not have any Level 2 or Level 3 financial assets or liabilities as of January 31, 2024.

v3.24.0.1

Inventories	9 Months Ended
	Jan. 31, 2024
Inventory Disclosure [Abstract]
Inventories	(6) Inventories: The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of January 31, 2024 and April 30, 2023 (in thousands):       January 31, 2024     April 30, 2023   Finished goods   $ 80,238     $ 93,705   Finished parts     53,544       65,460   Work in process     7,668       6,821   Raw material     12,079       11,132   Total inventories   $ 153,529     $ 177,118

v3.24.0.1

Accrued Expenses and Deferred Revenue	9 Months Ended
	Jan. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses and Deferred Revenue	(7) Accrued Expenses and Deferred Revenue: The following table sets forth other accrued expenses as of January 31, 2024 and April 30, 2023 (in thousands):   January 31, 2024     April 30, 2023   Accrued taxes other than income   $ 5,480     $ 3,703   Accrued settlement     3,200       —   Accrued employee benefits     3,186       3,256   Accrued distributor incentives     3,127       1,640   Accrued professional fees     3,109       2,596   Accrued other     2,891       4,597   Current portion of finance lease obligation     1,531       1,434   Accrued rebates and promotions     1,322       1,649   Current portion of operating lease obligation     488       1,274   Total accrued expenses and deferred revenue   $ 24,333     $ 20,149

v3.24.0.1

Stockholders' Equity	9 Months Ended
	Jan. 31, 2024
Equity [Abstract]
Stockholders' Equity	(8) Stockholders’ Equity: Treasury Stock On September 19, 2023, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024. Through the nine months ended January 31, 2024, we repurchased 716,869 shares of our common stock for $9.1 million under this authorization. There were no common stock purchases through the nine months ended January 31, 2023, nor were there any unfulfilled authorizations. Earnings per Share The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended January 31, 2024 and 2023 (in thousands, except per share data):   For the Three Months Ended January 31,     2024     2023     Net           Per Share     Net           Per Share     Income     Shares     Amount     Income     Shares     Amount   Basic earnings $   7,882       45,618     $   0.17     $   11,079       45,897     $   0.24   Effect of dilutive stock awards   —       410       —       —       269       —   Diluted earnings $   7,882       46,028     $   0.17     $   11,079       46,166     $   0.24     The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the nine months ended January 31, 2024 and 2023 (in thousands, except per share data):   For the Nine Months Ended January 31,     2024     2023     Net           Per Share     Net           Per Share     Income     Shares     Amount     Income     Shares     Amount   Basic earnings $   13,499       45,901     $   0.29     $   24,039       45,817     $   0.52   Effect of dilutive stock awards   —     414       —       —       316       —   Diluted earnings $   13,499       46,315     $   0.29     $   24,039       46,133     $   0.52   For the three months ended January 31, 2024 and 2023, the amount of common equivalent shares excluded from the computation of diluted earnings per share was 8,817 and 16,677, respectively, because the effect would be antidilutive. For the nine months ended January 31, 2024 and 2023, the number of common equivalent shares excluded from the computation of diluted earnings per share was 11,184 and 21,157, respectively, because the effect would be antidilutive. Incentive Stock and Employee Stock Purchase Plans In September 2022, our stockholders approved the 2022 Incentive Stock Plan under which employees and non-employees may be granted stock options, restricted stock awards, restricted stock units, stock appreciation rights, bonus stock and awards in lieu of obligations, performance awards, and dividend equivalents. We have an Employee Stock Purchase Plan, or the ESPP, under which each participant is granted an option to purchase our common stock at a discount on each subsequent exercise date during the offering period (as such terms are defined in the ESPP) in accordance with the terms of the ESPP. The total stock-based compensation expense, including purchases under our ESPP and grants of RSUs and performance-based RSUs, or PSUs, was $1.5 million and $1.3 million for the three months ended January 31, 2024 and 2023, respectively, and $4.3 million and $3.9 million for the nine months ended January 31, 2024 and 2023, respectively. We include stock-based compensation expense in cost of sales, sales, marketing, and distribution, research and development, and general and administrative expenses. We grant RSUs to employees and non-employee members of our Board of Directors. The awards are made at no cost to the recipient. An RSU represents the right to receive one share of our common stock and does not carry voting or dividend rights. Except in specific circumstances, RSU grants to employees vest over a period of four years with one-fourth of the units vesting on each anniversary of the grant date. We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period. We grant PSUs to our executive officers and, from time to time, certain management employees who are not executive officers. The PSUs vest, and the fair value of such PSUs will be recognized, over the corresponding three-year performance period. During the nine months ended January 31, 2024, we granted an aggregate of 357,357 RSUs, including 180,814 RSUs to non-executive officer employees, 117,724 RSUs to our executive officers, and 58,819 RSUs to our independent directors. During the nine months ended January 31, 2024, we granted 176,583 PSUs to certain of our executive officers. During the nine months ended January 31, 2024, we cancelled 158,100 PSUs as a result of the failure to satisfy the performance metric and 20,917 RSUs as a result of the service conditions not being met. In connection with the vesting of RSUs, during the nine months ended January 31, 2024, we delivered common stock to our employees, former employees, and directors, including our executive officers, with a total market value of $3.4 million. In connection with a 2019 grant, which vested in fiscal 2023, we delivered market-condition PSUs to certain of our executive officers and a former executive officer with a total market value of $664,000.   During the nine months ended January 31, 2023, we granted an aggregate of 286,218 RSUs, including 157,227 RSUs to non-executive officer employees, 72,494 RSUs to our executive officers, and 56,497 RSUs to our independent directors. During the nine months ended January 31, 2023, we granted 108,736 PSUs to certain of our executive officers. During the nine months ended January 31, 2023, we cancelled 33,974 RSUs as a result of the service conditions not being met. In connection with the vesting of RSUs, during the nine months ended January 31, 2023, we delivered common stock to our employees and independent directors, including our executive officers, with a total market value of $3.9 million. In connection with a 2018 grant, which vested in fiscal 2022, we delivered market-condition PSUs to certain of our executive officers and a former executive officer with a total market value of $1.2 million. In addition, in connection with a 2019 grant, 57,600 PSUs vested to certain of our executive officers and a former executive officer, which resulted from achieving the maximum performance of 200.0% of target for the original 28,800 PSUs granted. A summary of activity for unvested RSUs and PSUs for the nine months ended January 31, 2024 and 2023 is as follows:     For the Nine Months Ended January 31,       2024     2023             Weighted           Weighted       Total # of     Average     Total # of     Average       Restricted     Grant Date     Restricted     Grant Date       Stock Units     Fair Value     Stock Units     Fair Value   RSUs and PSUs outstanding, beginning of period     932,705     $ 13.14       827,930     $ 13.30   Awarded     533,940       12.07       423,754   (a)   13.53   Released     (281,495 )     11.57       (286,418 )     13.97   Forfeited     (179,017 )     10.77       (33,974 )     15.17   RSUs and PSUs outstanding, end of period     1,006,133     $ 13.43       931,292     $ 13.13     (a) Includes 43,200 PSUs that vested during the nine months ended January 31, 2024 in connection with achieving maximum performance targets for the applicable performance period. As of January 31, 2024, there was $4.8 million of unrecognized compensation expense related to unvested RSUs and PSUs. This expense is expected to be recognized over a weighted average remaining contractual term of 1.5 years.

v3.24.0.1

Commitments and Contingencies	9 Months Ended
	Jan. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	(9) Commitments and Contingencies: Litigation In January 2018, Gemini Technologies, Incorporated, or Gemini, commenced an action against us in the U.S. District Court for the District of Idaho, or the District Court. The complaint alleges, among other things, that we breached the earn-out and other provisions of the asset purchase agreement and ancillary agreements between the parties in connection with our acquisition of the Gemtech business from Gemini. The complaint seeks a declaratory judgment interpreting various terms of the asset purchase agreement and damages in the sum of $18.6 million. In May 2018, the District Court dismissed the complaint on the grounds of forum non conveniens. In June 2018, Gemini appealed that decision to the U.S. Court of Appeals for the Ninth Circuit, or the Ninth Circuit. In July 2019, the Ninth Circuit reversed the dismissal and remanded the case to the District Court to perform a traditional forum non conveniens analysis. In September 2019, the parties stipulated that they do not contest that the venue is proper in the District of Idaho. In November 2019, we filed an answer to Gemini’s complaint and a counterclaim against Gemini and its stockholders at the time of the signing of the asset purchase agreement. Plaintiffs amended their complaint to add a claim of fraud in the inducement. In September 2021, Gemini filed a motion for summary judgment seeking to dismiss our counterclaim. In June 2022, the District Court denied Gemini's motion for summary judgment. Gemini filed a second motion for summary judgment, and on August 14, 2023, the District Court again denied Gemini’s motion. On November 22, 2023, we entered into a settlement agreement with plaintiffs on the indemnity and counterclaims. On the same day, plaintiffs filed a motion for leave, seeking to file a second amended complaint. On January 31, 2024, the District Court allowed plaintiffs’ amended allegations of fraud, and denied without prejudice their motion to add punitive damages. We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action. We are a defendant in three product liability cases and are aware of two other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings. In addition, we are a co-defendant in a case filed in August 1999 by the city of Gary, Indiana, or the City, against numerous firearm manufacturers, distributors, and dealers seeking to recover monetary damages, as well as injunctive relief, allegedly arising out of the misuse of firearms by third parties. In January 2018, the Lake Superior Court, County of Lake, Indiana granted defendants’ Motion for Judgment on the Pleadings, dismissing the case in its entirety. In February 2018, plaintiffs appealed the dismissal to the Indiana Court of Appeals. In May 2019, the Indiana Court of Appeals issued a decision, which affirmed in part and reversed in part, and remanded for further proceedings, the trial court’s dismissal of the City’s complaint. In July 2019, defendants filed a Petition to Transfer jurisdiction to the Indiana Supreme Court. In November 2019, the Indiana Supreme Court denied defendants' petition to transfer, and the case was returned to the trial court. Discovery remains ongoing. We are a defendant in a putative class proceeding before the Ontario Superior Court of Justice in Toronto, Canada that was filed in December 2019. The action claims CAD$50 million in aggregate general damages, CAD$100 million in aggregate punitive damages, special damages in an unspecified amount, together with interest and legal costs. The named plaintiffs are two victims of a shooting that took place in Toronto in July 2018 and their family members. One victim was shot and injured during the shooting. The other victim suffered unspecified injuries while fleeing the shooting. The plaintiffs are seeking to certify a claim on behalf of classes that include all persons who were killed or injured in the shooting and their immediate family members. The plaintiffs allege negligent design and public nuisance. The case has not been certified as a class action. In July 2020, we filed a Notice of Motion for an order striking the claim and dismissing the action in its entirety. In February 2021, the court granted our motion in part, and dismissed the plaintiffs’ claims in public nuisance and strict liability. The court declined to strike the negligent design claim and ordered that the claim proceed to a certification motion. In March 2021, we filed a motion for leave to appeal the court’s refusal to strike the negligent design claim with the Divisional Court, Ontario Superior Court of Justice. In July 2021, plaintiffs filed a motion to stay our motion for leave to appeal with the Divisional Court, on grounds that appeal is premature. In November 2021, the Divisional Court granted plaintiffs' motion, staying our motion for leave to appeal until 30 days after the decision on the balance of plaintiffs' certification motion. A hearing on plaintiffs’ certification motion was held in January 2024. On March 5, 2024, the court denied the plaintiffs' motion for class certification. In May 2020, we were named in an action related to the Chabad of Poway synagogue shooting that took place in April 2019. The complaint was filed in the Superior Court of the State of California, for the County of San Diego – Central, and asserts claims against us for product liability, unfair competition, negligence, and public nuisance. The plaintiffs allege they were present at the synagogue on the day of the incident and suffered physical and/or emotional injury. The plaintiffs seek compensatory and punitive damages, attorneys’ fees, and injunctive relief. In September 2020, we filed a demurrer and motion to strike, seeking to dismiss plaintiffs’ complaint. In July 2021, the court granted our motion in part, and reversed it in part, ruling that (1) the PLCAA barred plaintiffs’ product liability action; (2) plaintiffs did not have standing to maintain an action under the Unfair Competition Law for personal injury related damages, but gave plaintiffs leave to amend to plead an economic injury; and (3) the PLCAA did not bar plaintiffs’ ordinary negligence and public nuisance actions because plaintiffs had alleged that we violated 18 U.S.C. Section 922(b)(4), which generally prohibits the sale of fully automatic “machineguns.” In August 2021, we filed a Petition for Writ of Mandate in the Court of Appeal of the State of California, Fourth Appellate District, Division One. In September 2021, the Court of Appeal denied our appeal. In February 2022, the court consolidated the case with three related cases, in which we are not a party. In March 2022, the court granted our motion, dismissing plaintiffs’ Unfair Competition Law claim, without further leave to amend. Discovery is ongoing. On February 28, 2023, we filed a motion for summary judgment. On May 19, 2023, the court denied our motion for summary judgment without prejudice and allowed plaintiffs time for additional, limited discovery. A hearing on our renewed motion for summary judgment was rescheduled to June 17, 2024, and the trial date is scheduled for August 30, 2024. We are a defendant in an action filed in the U.S. District Court for the District of Massachusetts. In August 2021, the Mexican Government filed an action against several U.S.-based firearms manufacturers and a firearms distributor, claiming defendants design, market, distribute, and sell firearms in ways they know routinely arm the drug cartels in Mexico. Plaintiff alleges, among other claims, negligence, public nuisance, design defect, unjust enrichment and restitution against all defendants and violation of the Massachusetts Consumer Protection Act against us alone, and is seeking monetary damages and injunctive relief. In November 2021, defendants filed motions to dismiss plaintiff's complaint. In September 2022, the district court granted defendants’ motions to dismiss. In October 2022, plaintiff filed a notice of appeal with the U.S. Court of Appeals for the First Circuit. On January 22, 2024, the First Circuit reversed the trial court’s dismissal of the case. We are evaluating our options. In September 2022, we were named as defendants in 12 nearly identical, separate actions related to a shooting in Highland Park, Illinois on July 4, 2022. The complaints were filed in the Circuit Court of the Nineteenth Judicial Circuit in Lake County, Illinois and assert claims against us for negligence and deceptive and unfair practices under the Illinois Consumer Fraud and Deceptive Business Practices Act. Plaintiffs also name as defendants the website and retailer that sold the firearm, the shooter, and the shooter’s father. The plaintiffs allege they were present at a parade at the time of the incident and suffered physical and/or emotional injury. The plaintiffs seek compensatory damages, attorneys’ fees, and injunctive relief. We filed motions for removal of each case to the U.S. District Court for the Northern District of Illinois. In November 2022, we filed a motion to consolidate the cases for preliminary motion purposes. In December 2022, plaintiffs filed motions to remand the cases back to the state court. On January 20, 2023, we filed our opposition to plaintiffs’ motion to remand. On September 25, 2023, the court granted plaintiffs’ motion to remand. On October 16, 2023, we filed a notice of appeal to the U.S. Court of Appeals for the Seventh Circuit. On October 20, 2023, we filed a Motion for Stay of the Remand Order with the U.S. District Court, seeking a stay of the remand, pending our appeal to the Seventh Circuit. On October 30, 2023, the court granted a stay of the remand pending appeal. On November 8, 2023, plaintiffs filed a motion to lift the stay pending appeal. No decision has been issued to date on plaintiffs’ motion. We filed our reply to appellee's opposition to our appeal on February 23, 2024. Oral argument is scheduled for April 4, 2024. In December 2022, the City of Buffalo, New York filed a complaint in the Supreme Court of the State of New York, County of Erie, against numerous manufacturers, distributors, and retailers of firearms. Later in December 2022, the City of Rochester, New York filed an almost identical complaint in the Supreme Court of the State of New York, County of Monroe, against the same defendants. The complaints allege violation of New York General Business Law, public nuisance, and deceptive business practices in violation of NY General Business Laws. In January 2023, we filed notices of removal of the cases to the U.S. District Court for the Western District of New York. On March 24, 2023, defendants filed a motion to stay both cases pending a ruling by the U.S. Court of Appeals for the Second Circuit in the NSSF v. James case. On June 8, 2023, the court granted defendants’ motions to consolidate and to stay pending resolution of the NSSF v. James appeal. We believe that the various allegations as described above are unfounded, and, in addition, that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party. In March 2022, two plaintiffs, on behalf of a proposed class of current and former employees and temporary workers who worked at our Springfield facility from November 2018 to the present, filed a claim alleging non-payment of wages and overtime in violation of the Massachusetts Wage Act and Massachusetts Fair Wage Act. The parties have reached a settlement agreement, which remains subject to court approval. In addition, from time to time, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, premises and employment matters, which arise in the ordinary course of business. The relief sought in individual cases primarily includes compensatory and, sometimes, punitive damages. Certain of the cases and claims seek unspecified compensatory or punitive damages. In others, compensatory damages sought may range from less than $75,000 to approximately $50.0 million. In our experience, initial demands do not generally bear a reasonable relationship to the facts and circumstances of a particular matter. We believe that our accruals for product liability cases and claims are a reasonable quantitative measure of the cost to us of product liability cases and claims. We are also involved in a putative stockholder derivative lawsuit filed on December 5, 2023 in the Eighth Judicial District Court, Clark County, Nevada. The action was brought by plaintiffs seeking to act on our behalf against our directors and certain of our executive officers. The complaint alleges breach of fiduciary duties by knowingly allowing us to become exposed to significant liability for intentionally violating federal, state, and local laws through our manufacturing, marketing, and sale of “AR-15 style rifles”. The derivative plaintiffs seek damages on our behalf from the individual defendants, as well as reforms and improvements to our compliance procedures and governance policies. We are vigorously defending ourselves in the lawsuits to which we are subject. An unfavorable outcome or prolonged litigation could harm our business. Litigation of this nature also is expensive, time consuming, and diverts the time and attention of our management. We monitor the status of known claims and the related product liability accrual, which includes amounts for defense costs for asserted and unasserted claims. After consultation with litigation counsel and a review of the merit of each claim, we have concluded that we are unable to reasonably estimate the probability or the estimated range of reasonably possible losses related to material adverse judgments related to such claims and, therefore, we have not accrued for any such judgments. In the future, should we determine that a loss (or an additional loss in excess of our accrual) is at least reasonably possible and material, we would then disclose an estimate of the possible loss or range of loss, if such estimate could be made, or disclose that an estimate could not be made. We believe that we have provided adequate accruals for defense costs. At this time, an estimated range of reasonably possible additional losses relating to unfavorable outcomes cannot be made. Commitments On September 30, 2021, we announced our plan to move our headquarters and significant elements of our operations to Maryville, Tennessee in 2023, or the Relocation. In connection with the Relocation, we entered into a project agreement, or the Project Agreement, with The Industrial Development Board of Blount County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the state of Tennessee, or the IDB. Pursuant to the Project Agreement, we represented to the IDB that we intend to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $25.97 at the facility. Further, pursuant to the Project Agreement, we are required to, among other things, (A) execute a facility lease and an equipment lease with the IDB; (B) cause the construction of the new facility at our sole cost and expense to commence on or before May 31, 2022; (C) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $120.0 million on or before December 31, 2025; (D) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023; (E) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031; and (F) make certain payments to IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections. On February 2, 2023, we entered into a design-build agreement with The Christman Company, or Christman, related to the construction of our new Tennessee facility, or the Construction Contract. The Construction Contract has an effective date of September 13, 2021 and incorporates the arrangements under which we and Christman have been proceeding. Pursuant to the Construction Contract, Christman is obligated to deliver certain services, including, among others, design phase services and construction phase services, and we are obligated to pay Christman for services performed. The parties to the Construction Contract have jointly agreed that Christman will perform and complete the Work (as defined therein) on a cost-plus basis for a guaranteed maximum price of $114,533,853, including contingencies. When adding the cost of machinery and equipment, we expect to spend between $160.0 million and $170.0 million through the end of fiscal 2024. The Construction Contract includes terms that are customary for contracts of this type, including with respect to indemnification and insurance. The Construction Contract lists certain contract milestones and guaranteed completion dates, and we will be entitled to liquidated damages under certain circumstances. Each party to the Construction Contract is entitled to terminate the Construction Contract under certain circumstances. As part of the Relocation, we recorded an impairment of $1.9 million relating to equipment in the Missouri Distribution Center that we do not expect to utilize in the Tennessee facility nor recover the net book value in a sale of the asset. In addition, effective with the Assignment and Assumption Agreement, we vacated the Missouri Distribution Center effective January 1, 2024. We sold assets we could no longer utilize to AOUT at their remaining net book value of $2.9 million and relocated the remaining assets to our Tennessee facility. Assets associated with certain of our assembly operations in Massachusetts continue to be fully utilized, and we intend to either move those assets to the Tennessee facility at the appropriate time or sell or sublease those assets that will not be moved. Consequently, as of January 31, 2024, we do not believe we had an impairment related to the building or assets. Subsequent to the Relocation, we expect our Massachusetts facility will continue to remain an important part of our manufacturing activities with significant portions of the operations being unaffected by the Relocation. In addition, we intend to relocate a portion of our plastic injection molding operations to the Tennessee facility. The relocation of these assets began in our second fiscal quarter of 2024. We are evaluating selling the remaining molding operations utilized in our Connecticut facility to a third party. As of January 31, 2024, most of the plastic injection molding machinery and equipment was being utilized, had been relocated to the Tennessee facility, or had been disposed. We will continue to evaluate possible losses associated with any impairment of such assets as we determine which assets may be sold.

v3.24.0.1

Restructuring	9 Months Ended
	Jan. 31, 2024
Restructuring and Related Activities [Abstract]
Restructuring	(10) Restructuring: As a result of the Relocation, $1.1 million and $626,000 of restructuring charges were recorded in the three months ended January 31, 2024 and 2023, respectively, and $7.0 million and $5.9 million of restructuring charges were recorded in the nine months ended January 31, 2024 and 2023, respectively. The following table summarizes restructuring charges by line item for the three and nine months ended January 31, 2024 and 2023 (in thousands):       For the Three Months Ended January 31,     For the Nine Months Ended January 31,       2024     2023     2024     2023   Cost of sales   $ 642     $ 305     $ 1,954     $ 3,283   Research and development     —       —       —       3   Selling, marketing, and distribution     67       (329 )     3,036       377   General and administrative     364       650       2,056       2,271   Total restructuring charges   $ 1,073     $ 626     $ 7,046     $ 5,934     The components of the restructuring charges recorded in our condensed consolidated statements of income were as follows (in thousands):       For the Three Months Ended January 31,     For the Nine Months Ended January 31,       2024     2023     2024     2023   Severance and employee-related benefits (a)   $ (440 )   $ 68     $ 441     $ 4,511   Relocation (a)     262       326       709       603   Public relations     (17 )     —       904       —   Freight     —       —       199       —   Consulting services     442       91       899       357   Employee relations     777       57       1,703       287   Office rent and equipment     49       84       2,191       176   Total restructuring charges   $ 1,073     $ 626     $ 7,046     $ 5,934     a) Recorded in accrued payroll and incentives. The following table summarizes the activity in the severance and employee-related benefits and relocation accruals for the nine months ended January 31, 2024 (in thousands):       Severance and employee-related benefits     Relocation     Total   Accrual at April 30, 2023   $ 10,054     $ 1,746     $ 11,800       Charges     441       709       1,150       Cash payments and settlements     (2,709 )     (1,645 )     (4,354 ) Accrual at January 31, 2024 (a)   $ 7,786     $ 810     $ 8,596     a) Recorded in accrued payroll and incentives.

v3.24.0.1

Basis of Presentation (Policies)	9 Months Ended
	Jan. 31, 2024
Accounting Policies [Abstract]
Interim Financial Information	Interim Financial Information – The condensed consolidated balance sheet as of January 31, 2024, the condensed consolidated statements of income for the three and nine months ended January 31, 2024 and 2023, the condensed consolidated statements of changes in stockholders’ equity for the three and nine months ended January 31, 2024 and 2023, and the condensed consolidated statements of cash flows for the nine months ended January 31, 2024 and 2023 have been prepared by us without audit. In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows for the three and nine months ended January 31, 2024 and for the periods presented, have been included. All intercompany transactions have been eliminated in consolidation. The consolidated balance sheet as of April 30, 2023 has been derived from our audited consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Fiscal 2023 Form 10-K. The results of operations for the three and nine months ended January 31, 2024 may not be indicative of the results that may be expected for the fiscal year ending April 30, 2024, or any other period.

v3.24.0.1

Leases (Tables)	9 Months Ended
	Jan. 31, 2024
Leases [Abstract]
Schedule of Assets and Liabilities Related to Operating and Financing Leases	The amounts of assets and liabilities related to our operating and financing leases as of January 31, 2024 were as follows (in thousands):       Balance Sheet Caption   January 31, 2024   Operating Leases           Right-of-use assets       $ 5,994   Accumulated amortization         (5,068 ) Right-of-use assets, net   Other assets   $ 926               Current liabilities   Accrued expenses and deferred revenue   $ 488   Non-current liabilities   Other non-current liabilities     616   Total operating lease liabilities       $ 1,104   Finance Leases           Right-of-use assets       $ 41,631   Accumulated depreciation         (11,147 ) Right-of-use assets, net   Property, plant, and equipment, net   $ 30,484               Current liabilities   Accrued expenses and deferred revenue   $ 1,531   Non-current liabilities   Finance lease payable, net of current portion     35,809   Total finance lease liabilities       $ 37,340
Summary of Future Expected Undiscounted Cash Flows	The following table represents future expected undiscounted cashflows, based on the Assignment and Assumption Agreement with AOUT, to be received on an annual basis for the next five years and thereafter, as of January 31, 2024 (in thousands):   Fiscal   Amount   2024   $ 788   2025     3,180   2026     3,235   2027     3,292   2028     3,350   Thereafter     38,906   Total future receipts     52,751   Less amounts representing interest     (16,065 ) Present value of sublease receipts   $ 36,686
Summary of Future Lease Payments for Operating and Finance Leases	Future lease payments for all our operating and finance leases for succeeding fiscal years is as follows (in thousands):       Operating     Financing     Total   2024       $ 325     $ 838     $ 1,163   2025         324       3,378       3,702   2026         301       3,433       3,734   2027         272       3,490       3,762   2028         125       3,424       3,549   Thereafter         —       38,906       38,906   Total future lease payments         1,347       53,469       54,816   Less amounts representing interest         (243 )     (16,129 )     (16,372 ) Present value of lease payments         1,104       37,340       38,444   Less current maturities of lease liabilities         (488 )     (1,531 )     (2,019 ) Long-term maturities of lease liabilities       $ 616     $ 35,809     $ 36,425

v3.24.0.1

Inventories (Tables)	9 Months Ended
	Jan. 31, 2024
Inventory Disclosure [Abstract]
Summary of Inventories	The following table sets forth a summary of inventories, net of reserves, stated at lower of cost or net realizable value, as of January 31, 2024 and April 30, 2023 (in thousands):       January 31, 2024     April 30, 2023   Finished goods   $ 80,238     $ 93,705   Finished parts     53,544       65,460   Work in process     7,668       6,821   Raw material     12,079       11,132   Total inventories   $ 153,529     $ 177,118

v3.24.0.1

Accrued Expenses and Deferred Revenue (Tables)	9 Months Ended
	Jan. 31, 2024
Payables and Accruals [Abstract]
Summary of Accrued Expenses	The following table sets forth other accrued expenses as of January 31, 2024 and April 30, 2023 (in thousands):   January 31, 2024     April 30, 2023   Accrued taxes other than income   $ 5,480     $ 3,703   Accrued settlement     3,200       —   Accrued employee benefits     3,186       3,256   Accrued distributor incentives     3,127       1,640   Accrued professional fees     3,109       2,596   Accrued other     2,891       4,597   Current portion of finance lease obligation     1,531       1,434   Accrued rebates and promotions     1,322       1,649   Current portion of operating lease obligation     488       1,274   Total accrued expenses and deferred revenue   $ 24,333     $ 20,149

v3.24.0.1

Stockholders' Equity (Tables)	9 Months Ended
	Jan. 31, 2024
Equity [Abstract]
Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share	The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per share for the three months ended January 31, 2024 and 2023 (in thousands, except per share data):   For the Three Months Ended January 31,     2024     2023     Net           Per Share     Net           Per Share     Income     Shares     Amount     Income     Shares     Amount   Basic earnings $   7,882       45,618     $   0.17     $   11,079       45,897     $   0.24   Effect of dilutive stock awards   —       410       —       —       269       —   Diluted earnings $   7,882       46,028     $   0.17     $   11,079       46,166     $   0.24       For the Nine Months Ended January 31,     2024     2023     Net           Per Share     Net           Per Share     Income     Shares     Amount     Income     Shares     Amount   Basic earnings $   13,499       45,901     $   0.29     $   24,039       45,817     $   0.52   Effect of dilutive stock awards   —     414       —       —       316       —   Diluted earnings $   13,499       46,315     $   0.29     $   24,039       46,133     $   0.52
Summary of Activity for Unvested RSUs and PSUs	A summary of activity for unvested RSUs and PSUs for the nine months ended January 31, 2024 and 2023 is as follows:     For the Nine Months Ended January 31,       2024     2023             Weighted           Weighted       Total # of     Average     Total # of     Average       Restricted     Grant Date     Restricted     Grant Date       Stock Units     Fair Value     Stock Units     Fair Value   RSUs and PSUs outstanding, beginning of period     932,705     $ 13.14       827,930     $ 13.30   Awarded     533,940       12.07       423,754   (a)   13.53   Released     (281,495 )     11.57       (286,418 )     13.97   Forfeited     (179,017 )     10.77       (33,974 )     15.17   RSUs and PSUs outstanding, end of period     1,006,133     $ 13.43       931,292     $ 13.13     (a) Includes 43,200 PSUs that vested during the nine months ended January 31, 2024 in connection with achieving maximum performance targets for the applicable performance period.

v3.24.0.1

Restructuring (Tables)	9 Months Ended
	Jan. 31, 2024
Restructuring and Related Activities [Abstract]
Components of restructuring charges	The following table summarizes restructuring charges by line item for the three and nine months ended January 31, 2024 and 2023 (in thousands):       For the Three Months Ended January 31,     For the Nine Months Ended January 31,       2024     2023     2024     2023   Cost of sales   $ 642     $ 305     $ 1,954     $ 3,283   Research and development     —       —       —       3   Selling, marketing, and distribution     67       (329 )     3,036       377   General and administrative     364       650       2,056       2,271   Total restructuring charges   $ 1,073     $ 626     $ 7,046     $ 5,934     The components of the restructuring charges recorded in our condensed consolidated statements of income were as follows (in thousands):       For the Three Months Ended January 31,     For the Nine Months Ended January 31,       2024     2023     2024     2023   Severance and employee-related benefits (a)   $ (440 )   $ 68     $ 441     $ 4,511   Relocation (a)     262       326       709       603   Public relations     (17 )     —       904       —   Freight     —       —       199       —   Consulting services     442       91       899       357   Employee relations     777       57       1,703       287   Office rent and equipment     49       84       2,191       176   Total restructuring charges   $ 1,073     $ 626     $ 7,046     $ 5,934     a) Recorded in accrued payroll and incentives.
Schedule of Severance and employee related benefit and Relocation accruals	The following table summarizes the activity in the severance and employee-related benefits and relocation accruals for the nine months ended January 31, 2024 (in thousands):       Severance and employee-related benefits     Relocation     Total   Accrual at April 30, 2023   $ 10,054     $ 1,746     $ 11,800       Charges     441       709       1,150       Cash payments and settlements     (2,709 )     (1,645 )     (4,354 ) Accrual at January 31, 2024 (a)   $ 7,786     $ 810     $ 8,596     a) Recorded in accrued payroll and incentives.

v3.24.0.1

Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Income/(loss) from discontinued operations, net of tax	$ 0	$ 0	$ 0	$ 0

v3.24.0.1

Discontinued Operations - Summary of Major Business Line Items Included in Discontinued Operations in Condensed Consolidation Statements of Income/(Loss) and Comprehensive Income/(Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 0	$ 0	$ 0	$ 0

v3.24.0.1

Leases - Schedule of Assets and Liabilities Related to Operating and Financing Leases (Detail) - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Operating Leases
Right-of-use assets	$ 5,994
Accumulated amortization	(5,068)
Right-of-use assets, net	$ 926
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets
Current liabilities	$ 488	$ 1,274
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and deferred revenue	Accrued expenses and deferred revenue
Non-current liabilities	$ 616
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other non-current liabilities
Total operating lease liabilities	$ 1,104
Finance Leases
Right-of-use assets	41,631
Accumulated depreciation	(11,147)
Right-of-use assets, net	$ 30,484
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, plant, and equipment, net
Current liabilities	$ 1,531	$ 1,434
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and deferred revenue	Accrued expenses and deferred revenue
Non-current liabilities	$ 35,809	$ 36,961
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Non-current liabilities
Total finance lease liabilities	$ 37,340

v3.24.0.1

Leases - Additional Information (Detail) - USD ($)		3 Months Ended	9 Months Ended
	Jul. 16, 2022	Jan. 31, 2024	Jan. 31, 2024
Lessee Lease Description [Line Items]
Operating lease cost		$ 375,000
Short-term operating lease costs		28,000
Financing lease Amortization		566,000
Financing lease interest expense		$ 470,000
Operating leases, weighted average lease term		2 years 10 months 24 days	2 years 10 months 24 days
Operating leases, weighted average discount rate		4.40%	4.40%
Financing leases, weighted average lease term		14 years 7 months 6 days	14 years 7 months 6 days
Financing leases, weighted average discount rate		5.00%	5.00%
Percentage of sublease	64.70%
Income related to sublease agreement			$ 1,900,000
Cash paid for amounts included in measurement of liabilities and operating cash flows		$ 1,100,000	3,500,000
General and administrative
Lessee Lease Description [Line Items]
Income related to sublease agreement			944,000
Interest Expense
Lessee Lease Description [Line Items]
Income related to sublease agreement			$ 924,000
National Logistics Facility Member
Lessee Lease Description [Line Items]
Percentage of sublease			59.00%

v3.24.0.1

Leases - Summary of Future Expected Undiscounted Cash Flows (Details) $ in Thousands	Jan. 31, 2024 USD ($)
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity [Abstract]
2024	$ 788
2025	3,180
2026	3,235
2027	3,292
2028	3,350
Thereafter	38,906
Total future receipts	52,751
Less amounts representing interest	(16,065)
Present value of sublease receipts	$ 36,686

v3.24.0.1

Leases - Summary of Future Lease Payments for Operating and Finance Leases (Detail) - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Operating And Finance Lease Liabilities Payments Due [Abstract]
2024	$ 1,163
2025	3,702
2026	3,734
2027	3,762
2028	3,549
Thereafter	38,906
Total future lease payments	54,816
Less amounts representing interest	(16,372)
Present value of lease payments	38,444
Less current maturities of lease liabilities	(2,019)
Long-term maturities of lease liabilities	36,425
Operating Leases
2024	325
2025	324
2026	301
2027	272
2028	125
Thereafter	0
Total future lease payments	1,347
Less amounts representing interest	(243)
Present value of lease payments	1,104
Less current maturities of lease liabilities	(488)	$ (1,274)
Long-term maturities of lease liabilities	616
Financing Leases
2024	838
2025	3,378
2026	3,433
2027	3,490
2028	3,424
Thereafter	38,906
Total future lease payments	53,469
Less amounts representing interest	(16,129)
Present value of lease payments	37,340
Less current maturities of lease liabilities	(1,531)	(1,434)
Finance Lease, Liability, Noncurrent	$ 35,809	$ 36,961

v3.24.0.1

Notes, Loans Payable, and Financing Arrangements - Additional Information (Detail) - USD ($)		9 Months Ended
	Aug. 24, 2020	Jan. 31, 2024
Maximum
Debt Instrument [Line Items]
Swingline Loan	$ 5,000,000
Swingline Loan
Debt Instrument [Line Items]
Interest description of revolving line of credit		Each Swingline Loan (as defined in the Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement).
Credit facility additional borrowing capacity option to increase maximum borrowing capacity	50,000,000
Unsecured Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity	$ 100,000,000
Interest description of revolving line of credit		the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Amended and Restated Credit Agreement) or the SOFR rate, plus an applicable margin based on our consolidated leverage ratio.
Credit facility, maturity	Aug. 24, 2025
Credit Facilities
Debt Instrument [Line Items]
Borrowings outstanding		$ 65,000,000
Line Of Credit Facility Interest Capitalised		759,000
Outstanding letters of credit		2,700,000
Credit Facilities | Self Insurance
Debt Instrument [Line Items]
Outstanding letters of credit		$ 1,500,000
Credit Facilities | London Interbank Offered Rate
Debt Instrument [Line Items]
Interest rate on borrowings		7.20%

v3.24.0.1

Fair Value Measurement - Additional Information (Detail) - USD ($)	Jan. 31, 2024	Apr. 30, 2023
(Level 1) | Fair Value on Recurring Basis
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 47,400,000	$ 53,600,000
(Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial assets	0
Financial liabilities	0
(Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Financial assets	0
Financial liabilities	$ 0

v3.24.0.1

Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Inventory Disclosure [Abstract]
Finished goods	$ 80,238	$ 93,705
Finished parts	53,544	65,460
Work in process	7,668	6,821
Raw material	12,079	11,132
Total inventories	$ 153,529	$ 177,118

v3.24.0.1

Accrued Expenses and Deferred Revenue - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Jan. 31, 2024	Apr. 30, 2023
Payables and Accruals [Abstract]
Accrued taxes other than income	$ 5,480	$ 3,703
Accrued settlement	3,200	0
Accrued employee benefits	3,186	3,256
Accrued distributor incentives	3,127	1,640
Accrued other	2,891	4,597
Accrued professional fees	3,109	2,596
Accrued rebates and promotions	1,322	1,649
Current portion of finance lease obligation	$ 1,531	$ 1,434
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued expenses and deferred revenue	Total accrued expenses and deferred revenue
Current portion of operating lease obligation	$ 488	$ 1,274
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Total accrued expenses and deferred revenue	Total accrued expenses and deferred revenue
Total accrued expenses and deferred revenue	$ 24,333	$ 20,149

v3.24.0.1

Stockholders' Equity - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended
		Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023	Sep. 19, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 1,500,000	$ 1,300,000	$ 4,300,000	$ 3,900,000
Performance period				3 years
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive shares excluded from computation of diluted earnings per share		8,817,000	16,677,000	11,184,000	21,157,000
Vesting period				4 years
Vesting, percentage				0.25%
Stock units, awarded				357,357	286,218
Stock units, forfeited				20,917	33,974
RSUs | Non-Executive Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded				180,814	157,227
RSUs | Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded				58,819	56,497
RSUs | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded				117,724	72,494
Grant date fair value of vested RSUs and PSUs				$ 3,400,000	$ 3,900,000
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Based Compensation Percentage Of Target Award Granted For Calculating Maximum Aggregate Award Of Performance Share					200.00%
Stock units, awarded					28,800
Performance Shares | Executive Officers
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded				176,583	108,736
Grant date fair value of vested RSUs and PSUs				$ 664,000	$ 1,200,000
Performance Shares | Excecutive And Former Executive Officer Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded					57,600
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, awarded	[1]			533,940	423,754
Stock units, forfeited				179,017	33,974
Unrecognized compensation expense related to unvested RSUs and PSUs		$ 4,800,000		$ 4,800,000
Weighted average remaining contractual term				1 year 6 months
Service based PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock units, forfeited				158,100
Share Repurchase Transactions Two [Member] | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase authorization						$ 50,000,000
Repurchase of common stock				716,869
Number of shares repurchased, value				$ 9,100,000
[1] Includes 43,200 PSUs that vested during the nine months ended January 31, 2024 in connection with achieving maximum performance targets for the applicable performance period.

v3.24.0.1

Stockholders' Equity - Reconciliation of Net Income Amounts and Weighted Average Number of Common and Common Equivalent Shares Used to Determine Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Net income
Income from continuing operations	$ 7,882	$ 11,079	$ 13,499	$ 24,039
Income from discontinued operations	0	0	0	0
Net income	$ 7,882	$ 11,079	$ 13,499	$ 24,039
Weighted average shares outstanding — Basic	45,618	45,897	45,901	45,817
Effect of dilutive stock awards	410	269	414	316
Weighted average shares outstanding — Diluted	46,028	46,166	46,315	46,133
Earnings per share - Basic
Net income	$ 0.17	$ 0.24	$ 0.29	$ 0.52
Earnings per share - Diluted
Net income	0.17	0.24	0.29	0.52
Earnings Per Share - Effect of Dilutive Stock Awards
Effect of dilutive stock awards	$ 0	$ 0	$ 0	$ 0

v3.24.0.1

Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Detail) - $ / shares		9 Months Ended
		Jan. 31, 2024	Jan. 31, 2023
Summary of activity in unvested restricted stock units and performance share units
Restricted Stock Units, Vested		(43,200)
RSUs and PSUs
Summary of activity in unvested restricted stock units and performance share units
Restricted Stock Units, RSUs and PSUs outstanding, beginning of period		932,705	827,930
Restricted Stock Units, Awarded	[1]	533,940	423,754
Restricted Stock Units, Vested		(281,495)	(286,418)
Restricted Stock Units, Forfeited		(179,017)	(33,974)
Restricted Stock Units, RSUs and PSUs outstanding, end of period		1,006,133	931,292
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, beginning of period		$ 13.14	$ 13.3
Weighted Average Grant Date Fair Value, Awarded	[1]	12.07	13.53
Weighted Average Grant Date Fair Value, Vested		11.57	13.97
Weighted Average Grant Date Fair Value, Forfeited		10.77	15.17
Weighted Average Grant Date Fair Value, RSUs and PSUs outstanding, end of period		$ 13.43	$ 13.13
[1] Includes 43,200 PSUs that vested during the nine months ended January 31, 2024 in connection with achieving maximum performance targets for the applicable performance period.

v3.24.0.1

Stockholders' Equity - Summary of Activity for Unvested RSUs and PSUs (Parenthetical) (Detail)	9 Months Ended
	Jan. 31, 2024 shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Stock unit vested	43,200

v3.24.0.1

Commitments and Contingencies - Additional Information (Detail) $ in Millions	1 Months Ended	9 Months Ended
	Jan. 31, 2018 USD ($)	Jan. 31, 2024 USD ($) Plaintiff Claim	Jan. 31, 2024 CAD ($) Plaintiff Claim	Feb. 02, 2023 USD ($)
Schedule Of Commitments And Contingencies [Line Items]
Compensatory damages sought	$ 18,600,000
Number of Product liability cases | Claim		3	3
Number Of Other Product Liability Claims | Claim		2	2
Year Of Other Product Liability Claim		December 2019	December 2019
Cost of machinery and equipment		$ 160,000,000
Cost of machinery and equipment, fisal year		$ 170,000,000
Construction Contract Cost				$ 114,533,853
IDB
Schedule Of Commitments And Contingencies [Line Items]
Terms of commitment		County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the state of Tennessee, or the IDB. Pursuant to the Project Agreement, we represented to the IDB that we intend to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $25.97 at the facility. Further, pursuant to the Project Agreement, we are required to, among other things, (A) execute a facility lease and an equipment lease with the IDB; (B) cause the construction of the new facility at our sole cost and expense to commence on or before May 31, 2022; (C) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $120.0 million on or before December 31, 2025; (D) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023; (E) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031; and (F) make certain payments to IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections.	County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the state of Tennessee, or the IDB. Pursuant to the Project Agreement, we represented to the IDB that we intend to incur, or cause to be incurred, no less than $120.0 million in aggregate capital expenditures on or before December 31, 2025, create no less than 620 new jobs, and sustain an average hourly wage of at least $25.97 at the facility. Further, pursuant to the Project Agreement, we are required to, among other things, (A) execute a facility lease and an equipment lease with the IDB; (B) cause the construction of the new facility at our sole cost and expense to commence on or before May 31, 2022; (C) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $120.0 million on or before December 31, 2025; (D) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023; (E) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031; and (F) make certain payments to IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections.
Minimum
Schedule Of Commitments And Contingencies [Line Items]
Compensatory damages sought		$ 75,000
Maximum
Schedule Of Commitments And Contingencies [Line Items]
Compensatory damages sought		$ 50,000,000
Putative Class
Schedule Of Commitments And Contingencies [Line Items]
Number of plaintiffs | Plaintiff		2	2
Putative Class | General Damages
Schedule Of Commitments And Contingencies [Line Items]
Aggregate damages claims			$ 50
Putative Class | Compensatory or Punitive Damages
Schedule Of Commitments And Contingencies [Line Items]
Aggregate damages claims			$ 100
Equipment [Member]
Schedule Of Commitments And Contingencies [Line Items]
Asset impairment charges		$ 1,900,000
Remaining net book value		$ 2,900,000

v3.24.0.1

Restructuring (Additional Information) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 1,073,000	$ 626,000	$ 7,046,000	$ 5,934,000
Cost of Goods Sold [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 642,000	$ 305,000	$ 1,954,000	$ 3,283,000

v3.24.0.1

Restructuring - Components of Restructuring Charges (Details) - USD ($)		3 Months Ended		9 Months Ended
		Jan. 31, 2024	Jan. 31, 2023	Jan. 31, 2024	Jan. 31, 2023
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		$ 1,073,000	$ 626,000	$ 7,046,000	$ 5,934,000
cost of sales
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		642,000	305,000	1,954,000	3,283,000
Research and development
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		0	0	0	3,000
Selling, marketing, and distribution
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		67,000	329,000	3,036,000	377,000
General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		364,000	650,000	2,056,000	2,271,000
Severance and Employee-Related Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	[1]	(440,000)	68,000	441,000	4,511,000
Relocation [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	[1]	262,000	326,000	709,000	603,000
Public relations [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		17,000	0	904,000	0
Freight [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		0	0	199,000	0
Consulting Services [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		442,000	91,000	899,000	357,000
Employee Relations [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		777,000	57,000	1,703,000	287,000
Office Rent and Equipment [Member]
Restructuring Cost and Reserve [Line Items]
Total restructuring charges		$ 49,000	$ 84,000	$ 2,191,000	$ 176,000
[1] Recorded in accrued payroll and incentives.

v3.24.0.1

Restructuring - Restructuring and relocation accrual (Details) $ in Thousands	9 Months Ended
	Jan. 31, 2024 USD ($)
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning Balance	$ 11,800
Charges	1,150
Cash payments and settlements	(4,354)
Accrual, Ending Balance	8,596	[1]
Relocation [Member]
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning Balance	1,746
Charges	709
Cash payments and settlements	(1,645)
Accrual, Ending Balance	810	[1]
Severance and employee relateds benefits [Member]
Restructuring Cost and Reserve [Line Items]
Accrual, Beginning Balance	10,054
Charges	441
Cash payments and settlements	(2,709)
Accrual, Ending Balance	$ 7,786	[1]
[1] Recorded in accrued payroll and incentives.

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