S&W reported that their firearm sales were up 27% in 2004.
I wonder if other gun makers had similar increases.
I think that a large part of the S&W increase may be due to more states offering CCW permits (i.e. increased demand for the J-Frame models, etc.).
Here is the link to the S&W press release:
http://home.businesswire.com/portal...d=news_view&newsId=20040714005803&newsLang=en
Smith & Wesson Reports 27% Increase in Firearms Sales for 2004 Fiscal Year
SPRINGFIELD, Mass.--(BUSINESS WIRE)--July 14, 2004--Smith & Wesson Holding Corporation (AMEX:SWB), parent of the legendary 152-year old handgun maker Smith & Wesson Corp., reported net product sales of $117.9 million for the year ended April 30, 2004, a 19.7% increase over the year ended April 30, 2003. Sales of firearms, the Company's core business, increased by 27.2% for the year ended April 30, 2004. The decision in fiscal 2003 to discontinue certain product lines and close four retail stores resulted in a decline in net product sales of approximately $4.5 million for fiscal 2004, when compared to the prior year. Net product sales for the three months ended April 30, 2004 increased by $5.2 million to $32.8 million, an 18.8% increase over the three months ended April 30, 2003.
The Company reported a net profit for the year ended April 30, 2004 of $1.4 million, or $.04 per diluted share, compared to a net profit of $15.7 million, or $.44 per diluted share, for the year ended April 30, 2003. Net income for the three months ended April 30, 2004 was $1.8 million, or $.05 per diluted share, compared to $14.9 million, or $.42 per diluted share, for the three months ended April 30, 2003. The results for the year and the three months include approximately $738,000, or approximately $.01 per diluted share, in reductions to the municipal litigation reserves due to favorable outcomes in several cases. The fiscal 2003 results included an income tax benefit of approximately $12.4 million, or approximately $.35 per diluted share, related primarily to the reversal of a federal income tax valuation allowance. This reversal of the federal income tax valuation allowance occurred in the three months ended April 30, 2003.
Order backlog at April 30, 2004 was at $28.4 million, down slightly from last year's record backlog, but reflective of the continued very strong demand for the company's products.
The fiscal 2004 results included a number of one-time costs that had a significant impact on profitability. The total impact of these one-time charges and professional fees was approximately $4.3 million, or $.07 per diluted share. The Company incurred restructuring costs of $1.0 million, or $.02 per diluted share, relative to the closing of the Scottsdale corporate office, the discontinuation of the Crossings catalog, and the discontinuation of the Advanced Technology division. The Company also incurred approximately $2.5 million, or $.04 per diluted share, in legal and accounting fees relative to the restatement of the financial statements for fiscal 2002 and the first three quarters of fiscal 2003, as well as legal fees associated with the ongoing SEC inquiry related to those restatements. In addition, the Company incurred a charge for severance costs of approximately $760,000, or $.01 per diluted share, relative to four former officers.
The Company expects to save approximately $1.1 million, or $.02 per diluted share, annually as a result of the closure of the Scottsdale corporate office. The Company's two discontinued businesses, the Crossings catalog and the Advance Technology division, lost a total of approximately $1.9 million, or $.03 per diluted share, in fiscal 2004, exclusive of costs related to their closure.
Cash and cash equivalents declined by $6.7 million in the year ended April 30, 2004 to $5.5 million. Capital expenditures exceeded depreciation by approximately $4.0 million as the Company continues to invest in the core business. The Company also repaid $1.1 million of its long-term debt in fiscal 2004. The decrease in cash was also attributable to the approximately $4.3 million in one-time charges and professional fees as well as the approximately $1.9 million in losses from the Crossings catalog and the Advanced Technology division.
Roy Cuny, President and CEO of Smith & Wesson Holding Corporation, commented, "We have refocused our emphasis on our firearms operation and we are executing a host of strategies to build stockholder value. These strategies include increasing operational efficiency and quality with tools such as Lean Six Sigma, and specific process improvement and training of Smith & Wesson personnel in new practices and techniques. In the market, the Company is shifting its strategy to be much more consumer focused with a litany of programs to better serve our valued customer base."
Cuny added, "Our latest new product introductions have been met with great excitement in the marketplace. The backlog as of April 30 is strong, and customer satisfaction is notably high."
John Kelly, Chief Financial Officer of Smith & Wesson Holding Corporation, commented, "The results of the restructuring efforts undertaken in January can be seen in the last quarter's results, in which income from operations increased from $1.4 million in the fourth quarter of fiscal 2003 to $3.7 million in the fourth quarter of fiscal 2004. We believe the restructuring better positions the company to invest in the core firearms business and build upon Smith & Wesson's core capabilities. Our CAPEX budget for fiscal 2005 is $5.0 million with a strong focus on new product development, continued enhancement to our production capabilities, and the ongoing pursuit of profitable growth from our core business."
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I wonder if other gun makers had similar increases.
I think that a large part of the S&W increase may be due to more states offering CCW permits (i.e. increased demand for the J-Frame models, etc.).
Here is the link to the S&W press release:
http://home.businesswire.com/portal...d=news_view&newsId=20040714005803&newsLang=en
Smith & Wesson Reports 27% Increase in Firearms Sales for 2004 Fiscal Year
SPRINGFIELD, Mass.--(BUSINESS WIRE)--July 14, 2004--Smith & Wesson Holding Corporation (AMEX:SWB), parent of the legendary 152-year old handgun maker Smith & Wesson Corp., reported net product sales of $117.9 million for the year ended April 30, 2004, a 19.7% increase over the year ended April 30, 2003. Sales of firearms, the Company's core business, increased by 27.2% for the year ended April 30, 2004. The decision in fiscal 2003 to discontinue certain product lines and close four retail stores resulted in a decline in net product sales of approximately $4.5 million for fiscal 2004, when compared to the prior year. Net product sales for the three months ended April 30, 2004 increased by $5.2 million to $32.8 million, an 18.8% increase over the three months ended April 30, 2003.
The Company reported a net profit for the year ended April 30, 2004 of $1.4 million, or $.04 per diluted share, compared to a net profit of $15.7 million, or $.44 per diluted share, for the year ended April 30, 2003. Net income for the three months ended April 30, 2004 was $1.8 million, or $.05 per diluted share, compared to $14.9 million, or $.42 per diluted share, for the three months ended April 30, 2003. The results for the year and the three months include approximately $738,000, or approximately $.01 per diluted share, in reductions to the municipal litigation reserves due to favorable outcomes in several cases. The fiscal 2003 results included an income tax benefit of approximately $12.4 million, or approximately $.35 per diluted share, related primarily to the reversal of a federal income tax valuation allowance. This reversal of the federal income tax valuation allowance occurred in the three months ended April 30, 2003.
Order backlog at April 30, 2004 was at $28.4 million, down slightly from last year's record backlog, but reflective of the continued very strong demand for the company's products.
The fiscal 2004 results included a number of one-time costs that had a significant impact on profitability. The total impact of these one-time charges and professional fees was approximately $4.3 million, or $.07 per diluted share. The Company incurred restructuring costs of $1.0 million, or $.02 per diluted share, relative to the closing of the Scottsdale corporate office, the discontinuation of the Crossings catalog, and the discontinuation of the Advanced Technology division. The Company also incurred approximately $2.5 million, or $.04 per diluted share, in legal and accounting fees relative to the restatement of the financial statements for fiscal 2002 and the first three quarters of fiscal 2003, as well as legal fees associated with the ongoing SEC inquiry related to those restatements. In addition, the Company incurred a charge for severance costs of approximately $760,000, or $.01 per diluted share, relative to four former officers.
The Company expects to save approximately $1.1 million, or $.02 per diluted share, annually as a result of the closure of the Scottsdale corporate office. The Company's two discontinued businesses, the Crossings catalog and the Advance Technology division, lost a total of approximately $1.9 million, or $.03 per diluted share, in fiscal 2004, exclusive of costs related to their closure.
Cash and cash equivalents declined by $6.7 million in the year ended April 30, 2004 to $5.5 million. Capital expenditures exceeded depreciation by approximately $4.0 million as the Company continues to invest in the core business. The Company also repaid $1.1 million of its long-term debt in fiscal 2004. The decrease in cash was also attributable to the approximately $4.3 million in one-time charges and professional fees as well as the approximately $1.9 million in losses from the Crossings catalog and the Advanced Technology division.
Roy Cuny, President and CEO of Smith & Wesson Holding Corporation, commented, "We have refocused our emphasis on our firearms operation and we are executing a host of strategies to build stockholder value. These strategies include increasing operational efficiency and quality with tools such as Lean Six Sigma, and specific process improvement and training of Smith & Wesson personnel in new practices and techniques. In the market, the Company is shifting its strategy to be much more consumer focused with a litany of programs to better serve our valued customer base."
Cuny added, "Our latest new product introductions have been met with great excitement in the marketplace. The backlog as of April 30 is strong, and customer satisfaction is notably high."
John Kelly, Chief Financial Officer of Smith & Wesson Holding Corporation, commented, "The results of the restructuring efforts undertaken in January can be seen in the last quarter's results, in which income from operations increased from $1.4 million in the fourth quarter of fiscal 2003 to $3.7 million in the fourth quarter of fiscal 2004. We believe the restructuring better positions the company to invest in the core firearms business and build upon Smith & Wesson's core capabilities. Our CAPEX budget for fiscal 2005 is $5.0 million with a strong focus on new product development, continued enhancement to our production capabilities, and the ongoing pursuit of profitable growth from our core business."
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