SMITH WESSON BRANDS INC
For the period ended Oct 31, 2024. Filed Dec 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 31, 2024 · Filed Dec 5, 2024
SWBI$14.47+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-07-31; filed 2024-09-05.
0000950170-24-104004
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-10-31; filed 2024-12-05.
0000950170-24-133685
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 56 previous paragraphs and 79 current paragraphs.
25 unchanged; 25 reworded; 17 added; 6 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 8 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Second Quarter Fiscal 2025 Highlights
Current report
Net sales were $129.7 million, an increase of $4.7 million, or 3.8%, from the comparable quarter last year.
Current report
During the three months ended October 31, 2024, we purchased 753,631 shares of our common stock for $9.8 million.
Current report
Gross margin was 26.9% compared with gross margin of 26.0% for the comparable period last year.
Current report
Net income was $2.0 million, or $0.04 per diluted share, compared with $5.6 million, or $0.12 per diluted share, for the comparable period last year.
Current report
During the six months ended October 31, 2024, we purchased 1,624,300 shares of our common stock for $22.6 million.
Current report
Sales of our long guns decreased $3.0 million, or 10.6%, from the comparable quarter last year, primarily as a result of the timing of new product launches in the comparable quarter last year, partially offset by a shift in product mix to higher priced models, as well as a 2% to 5% price increase on select products that became effective in the third quarter of fiscal 2024. Shipments of newly introduced products represented 54.4% of long gun sales in the period. Long gun unit shipments into our sporting goods channel decreased 26.4% from the comparable quarter last year while overall consumer demand for long guns increased 3.6% (as indicated by NICS).
Current report
Net Sales and Gross Profit – For the Six Months Ended October 31, 2024
Current report
The following table sets forth certain information regarding net sales and gross profit for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report
Gross margin for the six months ended October 31, 2024 was 26.9% compared with 26.0% for the comparable period last year, primarily because of a $3.2 million legal settlement recognized in the prior year comparable period. Excluding the impact of the prior year legal settlement, gross margin was lower by 40 basis points due to higher labor and overhead costs, partially offset by favorable fixed-cost absorption from higher production volumes, lower inventory adjustments, as described above, and lower Relocation costs.
Current report
Operating Income
Current report
The following table sets forth certain information regarding operating income for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report
Operating income for the six months ended October 31, 2024 decreased $3.0 million from the comparable period last year, primarilyfor the reasons outlined above.
Current report
Interest Expense, net
Current report
Net Income
Current report
Net income for the six months ended October 31, 2024 was $2.0 million compared with$5.6 million for the comparable period last year for the reasons outlined above.
Current report
During the three months ended October 31, 2024, we repurchased a total of 753,631 shares of our common stock for $9.8 million. During the six months ended October 31, 2024, we repurchased a total of 1,624,300 shares of our common stock for $22.6 million.
Removed paragraphs (6)
Previous report
First Quarter Fiscal 2025 Highlights
Previous report
During the three months ended July 31, 2024, we purchased 870,669 shares of our common stock for $12.9 million.
Previous report
Operating (Loss)/Income
Previous report
Interest (Expense)/Income, net
Previous report
Net (Loss)/Income
Previous report
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. With the completion of the Separation, we entered into the Missouri Sublease. In July 2022, we entered into an amendment to the Missouri Sublease, increasing the subleased space to 64.7% of the facility under the same terms as the Missouri Lease. As part of the Relocation, in January 2023, we entered into the Assignment and Assumption Agreement and the Amended and Restated Guaranty. We terminated the Missouri Sublease as of January 1, 2024. During the three months ended July 31, 2024, the finance lease liability relating to the Missouri Lease was reduced by $366,000 as a result of payments made by AOUT directly to the landlord. During the three months ended July 31, 2024, we recognized $878,000 of related income, of which $424,000 was recorded in general and administrative expenses and $454,000 was recorded in interest expense, net, in our condensed consolidated statements of operations.
Reworded paragraphs (25)
Previous wording
Gross margin was 27.4% compared with gross margin of 26.6% for the comparable quarter last year.
Current wording
Gross margin was 26.6% compared with gross margin of 25.4% for the comparable quarter last year.
Previous wording
Net loss was $2.1 million, or $0.05 per share, compared with net income of $3.1 million, or $0.07 per diluted share, for the comparable quarter last year.
Current wording
Net income was $4.1 million, or $0.09 per diluted share, compared with $2.5 million, or $0.05 per diluted share, for the comparable quarter last year.
Previous wording
Net sales were $88.3 million, a decrease of $25.9 million, or 22.7%, from the comparable quarter last year.
Current wording
Net sales were $218.0 million, a decrease of $21.2 million, or 8.9%, from the comparable period last year.
Previous wording
Sales of our handguns decreased $32.8 million, or 38.1%, from the comparable quarter last year, primarily due to lower consumer demand within the industry, partially offset by increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable quarter last year), which represented 36.1% of handgun sales in the period, and a 2%-5% price increase that became effective in the third quarter of fiscal 2024. Handgun unit shipments into the sporting goods channel decreased by 31.1% from the comparable quarter last year while overall consumer handgun demand decreased 5.0% (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS).
Current wording
Sales of our handguns increased $5.5 million, or 6.2%, over the comparable quarter last year, primarily as a result of increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable quarter last year), which represented 46.8% of handgun sales in the period, and a 2% to 5% price increase that became effective in the third quarter of fiscal 2024, partially offset by a shift in product mix to lower priced models. Handgun unit shipments into the sporting goods channel increased by 19.2% over the comparable quarter last year while overall consumer handgun demand remained relatively flat (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS).
Previous wording
Newly introduced products represented 41.4% of net sales for the three months ended July 31, 2024 and included six new pistols, four new long guns, and many new product line extensions.
Current wording
Newly introduced products represented 44.4% of net sales for the three months ended October 31, 2024 and included six new pistols, three new long guns, and many new product line extensions.
Previous wording
Gross margin for the three months ended July 31, 2024 was 27.4% compared with 26.6% for the comparable quarter last year, primarily because of favorable fixed-cost absorption from higher production volume, lower inventory reserve adjustments, a price increase that became effective in the third quarter of fiscal 2024, and lower Relocation costs, partially offset by higher promotional costs.
Current wording
Gross margin for the three months ended October 31, 2024 was 26.6% compared with 25.4% for the comparable quarter last year, primarily because of a $3.2 million legal settlement recognized in the prior year comparable quarter. Excluding the impact of the prior year legal settlement, gross margin was lower by 130 basis points due to higher labor and overhead costs, partially offset by lower inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs) and favorable fixed-cost absorption from higher production volumes.
Previous wording
Inventory balances increased $29.3 million between April 30, 2024 and July 31, 2024 due to a combination of the seasonal slowdown in demand combined with level loading of our manufacturing facilities to ensure our ability to satisfy anticipated future demand. 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 rise slightly during our second fiscal quarter before declining during the remainder of the fiscal year.
Current wording
Inventory balances increased $35.5 million between April 30, 2024 and October 31, 2024 as a result of a slowdown in demand combined with level loading of our manufacturing facilities to ensure our ability to satisfy anticipated future demand. 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 to decline during the remainder of the fiscal year.
Previous wording
Sales of our long guns increased $5.9 million, or 31.6%, over the comparable quarter last year, primarily due to increased shipments of newly introduced products, which represented 70.0% of long gun sales in the period, as well as a 2%-5% price increase on select products that became effective in the third quarter of fiscal 2024. Long gun unit shipments into our sporting goods channel decreased 3.0% from the comparable quarter last year while overall consumer demand for long guns decreased 0.5% (as indicated by NICS).
Current wording
Sales of our long guns increased $3.0 million, or 6.3%, over the comparable period last year, primarily as a result of increased shipments of newly introduced products, which represented 62.1% of long gun sales in the period, a shift in product mix to higher priced models, as well as a 2% to 5% price increase on select products that became effective in the third quarter of fiscal 2024. Long gun unit shipments into our sporting goods channel decreased 17.4% from the comparable period last year while overall consumer demand for long guns increased 1.8% (as indicated by NICS).
Previous wording
Other products and services revenue increased $981,000, or 10.5%, from the comparable quarter last year, primarily because of increased suppressor and component parts sales, partially offset by lower business-to-business and handcuff sales.
Current wording
Other products and services revenue increased $3.2 million, or 18.1%, over the comparable period last year, primarily because of increased suppressor and component parts sales, partially offset by lower handcuff and business-to-business sales.
Previous wording
Research and development expenses increased $716,000 over the prior year comparable quarter because of higher materials and testing costs associated with new product development and higher compensation-related costs. Selling, marketing, and distribution expenses decreased $203,000 from the prior year comparable quarter primarily as a result of a $2.0 million impairment recognized in the prior year comparable quarter on distribution equipment related to the Relocation. Excluding the impact of the prior year impairment charge, selling, marketing, and distribution expenses increased $1.8 million due to higher spending on promotions, to stimulate demand, and the timing of certain industry events. General and administrative expenses decreased $511,000 from the prior year comparable quarter, primarily because of lower profit sharing expense and lower Relocation costs, partially offset by higher legal costs.
Current wording
Research and development expenses increased $1.2 million over the prior year comparable period because of higher materials and testing costs associated with new product development and higher compensation-related costs. Selling, marketing, and distribution expenses decreased $1.6 million from the prior year comparable period, primarily as a result of a $1.9 million impairment on distribution equipment related to the Relocation and one-time costs related to our grand opening event at our Maryville facility in the prior year comparable period. Excluding the impact of these one-time prior year charges, selling, marketing, and distribution expenses increased $1.2 million, primarily as a result of the timing of certain industry events and higher spending on promotions. General and administrative expenses decreased $56,000 from the prior year comparable period, primarily because of lower Relocation costs, lower profit sharing expense, and lower compensation-related expense, partially offset by higher legal costs.
Previous wording
Operating (loss)/income for the three months ended July 31, 2024 decreased $6.2 million from the comparable quarter last year, primarilyfor the reasons outlined above.
Current wording
Operating income for the three months ended October 31, 2024 increased $3.2 million over the comparable quarter last year, primarilyfor the reasons outlined above.
Previous wording
The following table sets forth certain information regarding interest (expense)/income, net for the three months ended July 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain information regarding interest expense, net for the three months ended October 31, 2024 and 2023 (dollars in thousands):
Previous wording
Interest expense increased by $885,000 over the comparable quarter last year as a result of higher average debt balances, lower capitalized interest, and lower average cash balances during the three months ended July 31, 2024 compared with the comparable quarter last year.
Current wording
Interest expense increased by $773,000 over the comparable quarter last year as a result of higher average debt balances, lower capitalized interest, and lower average cash balances during the three months ended October 31, 2024 compared with the comparable quarter last year.
Previous wording
Income tax expense decreased $1.9 million from the comparable quarter last year primarily as a result of lower operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate is 25.5% in the current quarter and 24.7% in the prior year comparable quarter. The increase in the effective tax rate was due to changes in state apportionment.
Current wording
Income tax expense increased $649,000 from the comparable quarter last year, primarily as a result of higher operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate is 26.0% in the current quarter and 23.5% in the prior year comparable quarter. The increase in the effective tax rate was due to changes in state apportionment and a decrease in pre-tax profitability.
Previous wording
The following table sets forth certain information regarding net (loss)/income and the related per share data for the three months ended July 31, 2024 and 2023 (dollars in thousands, except per share data):
Current wording
The following table sets forth certain information regarding net income and the related per share data for the three months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):
Previous wording
Net loss for the three months ended July 31, 2024 was $2.1 million compared with net income of $3.1 million for the comparable quarter last year for the reasons outlined above.
Current wording
Net income for the three months ended October 31, 2024 was $4.1 million compared with$2.5 million for the comparable quarter last year for the reasons outlined above.
Previous wording
The following table sets forth certain cash flow information for the three months ended July 31, 2024 and 2023 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Previous wording
Cash used in operating activities was $30.8 million for the three months ended July 31, 2024 compared with $40.6 million of cash provided for the three months ended July 31, 2023. Cash used in operating activities for the three months ended July 31, 2024 was unfavorably impacted by a $29.3 million increase in inventory compared with a $6.4 million decrease in inventory in the prior comparable period, an $11.3 million decrease in accounts receivable compared with a $27.0 million decrease in accounts receivable in the prior comparable period, an $11.7 million decrease in accounts payable compared with a $1.8 million decrease in accounts payable in the prior comparable period, and a $4.8 million decrease in accrued payroll and incentives compared with a $1.6 million increase in accrued payroll and incentives in the prior comparable period.
Current wording
Cash used in operating activities was $38.2 million for the six months ended October 31, 2024 compared with $37.8 million of cash provided for the six months ended October 31, 2023. Cash used in operating activities for the six months ended October 31, 2024 was unfavorably impacted by a $35.5 million increase in inventory compared with a $13.8 million decrease in inventory in the prior comparable period, a $10.1 million decrease in accounts payable compared with a $14.7 million increase in accounts payable in the prior comparable period, and a $3.9 million decrease in accrued payroll and incentives compared with a $1.3 million increase in accrued payroll and incentives in the prior comparable period. Cash used in operating activities for the six months ended October 31, 2024 was favorably impacted by a $6.4 million decrease in accounts receivable compared with a $4.6 million increase in accounts receivable in the prior comparable period.
Previous wording
Cash used in investing activities decreased $27.4 million for the three months ended July 31, 2024 compared with the prior year comparable period. We paid $4.7 million for capital expenditures for the three months ended July 31, 2024, $27.4 million lower than the prior year comparable period primarily due to payments related to the Relocation in the prior year period.
Current wording
Cash used in investing activities decreased $59.2 million for the six months ended October 31, 2024 compared with the prior year comparable period. We paid $8.0 million for capital expenditures for the six months ended October 31, 2024, $58.9 million lower than the prior year comparable period, primarily as a result of payments related to the Relocation in the prior year period.
Previous wording
Cash provided by financing activities was $10.2 million for the three months ended July 31, 2024 compared with $6.6 million of cash used in financing activities for the three months ended July 31, 2023. Cash provided by financing activities during the three months ended July 31, 2024 was primarily the result of $30 million in borrowings under our revolving line of credit, partially offset by $12.9 million of share repurchases and $5.9 million in dividend distributions.
Current wording
Cash provided by financing activities was $24.3 million for the six months ended October 31, 2024 compared with $19.9 million of cash provided in financing activities for the six months ended October 31, 2023. Cash provided by financing activities during the six months ended October 31, 2024 was primarily the result of $60 million in borrowings under our revolving line of credit, partially offset by $22.6 million of share repurchases and $11.7 million in dividend distributions.
Previous wording
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 July 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 amended 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.
Current wording
Credit Facilities — We entered into the Second Amended and Restated Credit Agreement on October 3, 2024. The Second Amended and Restated Credit Agreement provides for a revolving line of credit of $175.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Second Amended and Restated Credit Agreement) or the SOFR rate, plus an applicable margin based on our consolidated leverage ratio. The Second 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 Second Amended and Restated Credit Agreement). Subject to the satisfaction of certain terms and conditions described in the Second 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 October 3, 2029 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Second Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.
Previous wording
As of July 31, 2024, we had $70.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 7.19%, which was equal to the SOFR rate plus an applicable margin.
Current wording
As of October 31, 2024, we had $100.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 6.92%, which was equal to the SOFR rate plus an applicable margin.
Previous wording
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 fiscal 2024, we purchased 793,551 shares of our common stock for $10.2 million under this authorization. During the three months ended July 31, 2024, we repurchased 870,669 shares of our common stock for $12.9 million under this authorization. There were no common stock purchases during the three months ended July 31, 2023, nor were there any unfulfilled authorizations. On September 5, 2024, 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 from September 20, 2024 through September 20, 2025.
Current wording
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, or the 2023 Authorization. During fiscal 2024, we purchased 793,551 shares of our common stock for $10.2 million under the 2023 Authorization. During fiscal 2025, we purchased 1,531,763 shares of our common stock for $21.4 million under the 2023 Authorization. The 2023 Authorization expired on September 19, 2024. On September 5, 2024, 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 from September 20, 2024 through September 20, 2025, or the 2024 Authorization. During fiscal 2025, we have repurchased 92,537 shares of our common stock for $1.2 million under the 2024 Authorization.
Previous wording
Dividends —In June 2024, our Board of Directors authorized a regular quarterly dividend for stockholders of $0.13 per share. The current dividend will be for stockholders of record as of market close on September 19, 2024 and will be payable on October 3, 2024.
Current wording
Dividends —In June 2024, our Board of Directors authorized a regular quarterly dividend for stockholders of $0.13 per share. The next dividend will be for stockholders of record as of market close on December 19, 2024 and will be payable on January 2, 2025.
Previous wording
As of July 31, 2024, we had $35.5 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 for at least the next 12 months.
Current wording
As of October 31, 2024, we had $39.1 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 for at least the next 12 months.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Our operating results for the six months ended October 31, 2024 included the following:
Current report — wording carried from elsewhere
Other products and services revenue increased $2.2 million, or 26.5%, over the comparable quarter last year, primarily because of increased suppressor and component parts sales.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding firearm units shipped by trade channel for the six months ended October 31, 2024 and 2023 (units in thousands):
Current report — wording carried from elsewhere
Sales of our handguns decreased $27.4 million, or 15.7%, from the comparable period last year, primarily as a result of lower consumer demand within the industry and a shift in product mix to lower priced models, partially offset by increased shipments of newly introduced products, which represented 43.0% of handgun sales in the period, and a 2% to 5% price increase that became effective in the third quarter of fiscal 2024. Handgun unit shipments into the sporting goods channel decreased by 4.7% from the comparable period last year while overall consumer handgun demand decreased 2.5% (as indicated by adjusted background checks reported by NICS).
Current report — wording carried from elsewhere
Newly introduced products represented 43.2% of net sales for the six months ended October 31, 2024 and included six new pistols, four new long guns, and many new product line extensions.
Current report — wording carried from elsewhere
Research and development expenses increased $497,000 over the prior year comparable quarter because of higher materials and testing costs associated with new product development. Selling, marketing, and distribution expenses decreased $1.4 million from the prior year comparable quarter, primarily as a result of one-time costs related to our grand opening event at our Maryville facility in the prior year comparable quarter and lower spending on promotions. General and administrative expenses increased $457,000 over the prior year comparable quarter, primarily because of higher legal costs, partially offset by lower compensation-related expense and lower professional services.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding interest expense, net for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
Interest expense increased by $1.7 million over the comparable period last year as a result of higher average debt balances, lower capitalized interest, and lower average cash balances during the six months ended October 31, 2024 compared with the comparable period last year.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding income tax expense for the six months ended October 31, 2024 and 2023 (dollars in thousands):
Current report — wording carried from elsewhere
Income tax expense decreased $1.3 million from the comparable period last year, primarily as a result of lower operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate was 26.4% in the current period and 24.2% in the prior year comparable period. The increase in the effective tax rate was due to changes in state apportionment and a decrease in pre-tax profitability.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding net income and the related per share data for the six months ended October 31, 2024 and 2023 (dollars in thousands, except per share data):