Smith & Wesson Holding Corporation Reports First Quarter Fiscal 2010

[thundley4]

Smith & Wesson Holding Corporation Reports First Quarter Fiscal 2010 Financial Results
 
Record Quarterly Sales of $102 Million (+30%)

Record Quarterly Net Income of $12.6 Million (+458%)

Record Quarterly, Fully Diluted EPS of $0.21 (+320%)

Record Adjusted EBITDAS of $20 Million

Net sales for the first fiscal quarter ended July 31, 2009 were $102.2 million, which was $23.8 million, or 30.3%, higher than net sales of $78.5 million for the first fiscal quarter last year. Gross profit of $35.6 million, or 34.8% of sales, for the first quarter of fiscal 2010 increased by 43.4% compared with gross profit of $24.8 million, or 31.7% of sales, for the first quarter last year. Net income for the first quarter of fiscal 2010 was $12.6 million, or $0.21 per diluted share, compared with $2.3 million, or $0.05 per diluted share, for the first quarter of fiscal 2009. Net income included a non-cash, fair-value adjustment to the contingent consideration accrual related to our acquisition of Universal Safety Response ("USR") that increased fully diluted earnings per share by $0.05 in the current fiscal period. Adjusted EBITDAS, a non-GAAP financial measure, was $20.2 million for the first quarter, nearly double the $10.2 million in the first quarter of fiscal 2009.

Smith & Wesson President and CEO, Michael F. Golden, said, "Ongoing consumer demand for handguns and tactical rifles fueled our strong growth and allowed us to deliver record financial results in the first quarter. Higher production levels in our Springfield factory allowed us to capture additional revenue in the quarter, and a focus on controlling costs helped translate that revenue into profitability."

Firearm sales increased for the first quarter by $21.7 million, or 29.6%, over the comparable quarter last year. Sales of pistols increased 14.5%, as we addressed a strong backlog and ongoing consumer demand. Orders for M&P pistols were received from a number of police agencies. In addition, Walther product sales grew 44.2% based on increased production and availability of products. Sales of M&P15 tactical rifles in the first quarter grew by 347.4% versus the comparable quarter a year ago. Revolver sales decreased 4.0% versus the comparable quarter one year ago, a decline related to low finished goods inventory at the start of the quarter, combined with strong demand for smaller-framed revolvers, which carry a lower retail price. Non-firearm sales totaled $7.5 million, a 38.7% increase from non-firearm sales of $5.4 million for the first quarter last year.

http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/09-09-2009/0005090939&EDATE

We knew something like this would occur.

[SSG Snuggle Bunny]

I give full credit to Obama's political policies.

[Gratiot]

I think things have really started to settle down now.  For about the past month, I've been actually seeing some of the hot pistols and black rifles in stock, being advertised, and even discounts off of MSRP.  Not the inflated rape prices from six months back.

Last winter I placed my name on a wait list at several dealers for a particular rifle.  Originally I offered to pay in advance the MSRP, they declined stating they're selling them at a major premium.  About six-eight weeks ago, one of them called stating that they finally got one in and are selling it at MSRP.  I offered to come pick it up the next day, if they can hold it, they declined holding it even for a night.  Well... earlier this week they called again, asking if I'd be interested in it for $100 below MSRP.  It seems things are starting to really change. 

[NHSparky]

Where, Gratiot?  Add to that the fact I'm still not seeing any ammo anywhere...

[Gratiot]

Where, Gratiot?  Add to that the fact I'm still not seeing any ammo anywhere...

Metro-Detroit area.  Ammo is still a pain to find, albeit it seems to be slightly less difficult than before.

[NHSparky]

Well, if gun prices are coming down, that's a start.  I'd like to get an AR-15 with my outage money, if I have any left over after paying bills.  Any recommendations?

[rich_t]

I like my Bushmaster.

[NHSparky]

Rich--I wish I had the expertise and patience to buy the parts and build my own, but sadly I just don't.  If you have a link to anything you think I should be looking for, please don't hesitate to put it up in the Firearms section.

I saw an Colt AR-15 over at one of the sporting goods stores here in town, but $1450?  Seems a bit steep, even if it does have tac light and sling...

[Gratiot]

Well, if gun prices are coming down, that's a start.  I'd like to get an AR-15 with my outage money, if I have any left over after paying bills.  Any recommendations?

After reading a lot of reviews, I was looking at picking up a Stag Arms AR-15 Model 2 or 2T.  However a few helpful posters here have enticed me to just try building my own, which is the route I'm going to try now    Lets you save several hundred compared to the retail assembled ones along with the satisfaction of building/assembling it yourself.

[Gratiot]

I saw an Colt AR-15 over at one of the sporting goods stores here in town, but $1450?  Seems a bit steep, even if it does have tac light and sling...

If you have Gander Mountains near you, they're actually advertising in their weekly fliers Smith and Wesson Military & Police AR-15s... for about $980 I believe. 

[Chris]

After reading a lot of reviews, I was looking at picking up a Stag Arms AR-15 Model 2 or 2T.  However a few helpful posters here have enticed me to just try building my own, which is the route I'm going to try now    Lets you save several hundred compared to the retail assembled ones along with the satisfaction of building/assembling it yourself.

It's not difficult... you can do it with a hammer, pliers, and a screwdriver.  Having punch pins helps, but I used some small Torqx bits instead.  Just make sure you have extra springs and pins in case you lose or break any.

[Gratiot]

Rich--I wish I had the expertise and patience to buy the parts and build my own, but sadly I just don't.  If you have a link to anything you think I should be looking for, please don't hesitate to put it up in the Firearms section.

I've no expertise or experience in the matter, and was a bit hesitant about attempting to assemble one.  But with how many online instructional videos and forums there are on the issue and our own posters here, I figure it's worth a try... If I deem it too difficult, or become baffled, hell... a few hundred of the hundreds saved to the local gunsmith and I'm sure he'll be willing to lend a hand.

I saw an Colt AR-15 over at one of the sporting goods stores here in town, but $1450?  Seems a bit steep, even if it does have tac light and sling...

Last winter during the height of the demand, one of the ranges near me still had a healthy stock of AR-15s for sale.  They added a few minor upgrades such as streamlights, grips, and lasers to them.  Than upped the price of formerly $900-1200 guns too $2700-3800!  Granted, they weren't leaping off the shelves but still...

[NHSparky]

If you have Gander Mountains near you, they're actually advertising in their weekly fliers Smith and Wesson Military & Police AR-15s... for about $980 I believe. 

New York is the closest, dammit.  Good luck with me having one of those in the trunk and getting stopped in Mass, federal law be dammed.

[Gratiot]

It's not difficult... you can do it with a hammer, pliers, and a screwdriver.  Having punch pins helps, but I used some small Torqx bits instead.  Just make sure you have extra springs and pins in case you lose or break any.

As soon as I figure out my auto purchase and get back from a white water trip a few hours east of you, I'll start ordering the parts    I'll be asking lots of questions than!

[Gratiot]

New York is the closest, dammit.  Good luck with me having one of those in the trunk and getting stopped in Mass, federal law be dammed.

I've no idea since they're a large corporation, but they might be willing to ship it to your local FFL dealer.

If not, while I've never dealt with them.  Buds Gun Shop seems to have quite a few AR-15's in stock.  Several for $800-1000, with shipping to your local FFL dealer included.

[Chris]

If not, while I've never dealt with them.  Buds Gun Shop seems to have quite a few AR-15's in stock.  Several for $800-1000, with shipping to your local FFL dealer included.

$800 is not a bad price.  I paid $700 for parts and got smaller NM-type sights, a stainless steel barrel, and a reciever from DPMS.  Shipping, FFL, and running to the fairgrounds gun show for some last-minute replacement parts probably brought it up to $800.  Those NM iron sights were a huge improvement.