SPRINGFIELD — Gunmaker Smith & Wesson reported Thursday that its net sales were up 12.1 percent for its most recent quarter compared with the same time last year.
The corporation issued a news release just after the close of the stock market Thursday, stating:
•Sales were $147.8 million for the three months ending July 31. That is up from $131.86 million for the same time period last year.
•Smith & Wesson accessories division net sales of $13.3 million increased by 29.9 percent from the comparable quarter last year.
•Smith & Wesson grew that business by buying an accessories company, Battenfeld Technologies, Inc., on Dec. 11, 2014.
•For the quarter, net income was $14.4 million, or 26 cents per diluted share, compared with $14.6 million, also 26 cents per diluted share.
•When adjusted for one-time charges, those earnings were $17.7 million, or 32 cents per diluted share, compared with $14.9 million, or 27 cents per share, for the first quarter last year.
•The earnings beat Wall Street expectations.
•Smith & Wesson upgraded its financial outlook for the full fiscal year, now predicting $620 million in sales for the current fiscal year instead of the $610 million it had predicted.
•Smith & Wesson now expects to earn $1.19 a share compared with the $1.14 a share the company had been predicting.
•Smith & Wesson ended the first quarter with no borrowings on its $175.0 million revolving line of credit.
•Inventory is up but Smith & Wesson typically builds inventory in the summer as it prepares for the busy fall hunting and holiday shopping seasons.
Smith & Wesson stock, SWHC on the NASDAQ, was $17.01 a share in after hours trading at 6:15 p.m. Thursday. The stock was up about 5 percent from the $16.22 price at Wednesday's close.
James Debney, Smith & Wesson president and CEO said in a news release:
"Our first quarter results exceeded our expectations for sales and net income in both our firearms and accessories divisions. Higher revenue in our firearms division was driven by strong orders for our M&P 15 Sport rifles, our Thompson/Center Venture bolt-action rifles and our M&P Shield polymer pistols. Our accessories division, which was established less than one year ago, also continued to deliver excellent results, with revenue and gross margins that were positive from the year-ago quarter. During the quarter, we introduced limited edition models of our M&P Bodyguard 380 pistol and Model 642 J-Frame Revolver, and product development teams in both our firearm and accessories divisions continued to prepare several new products and extensions for launch at SHOT Show 2016. Based upon our performance for the first quarter and our current outlook for the remainder of fiscal 2016, we are raising our full year revenue and net income guidance."
Wall Street analysts had predicted a strong quarter from Smith & Wesson. FBI background checks, often used as a measure of gun sales, are on a track to beat their all time high of 21.1 million, which was set in 2013. (pdf)
Founded by Horace Smith and D.B. Wesson in 1852, Smith & Wesson has 1,758 full-time employees. The company's headquarters and factory fill a sprawling facility on Roosevelt Avenue in Springfield.
In May 2014, Smith & Wesson bought Tri Town Precision Plastics, Inc. of Deep River, Connecticut, for $22.8 million. Tri Town had been a major supplier of plastic parts for Smith & Wesson, which at the time said it was trying to vertically integrate its operations and secure its supply chain.
In December 2014, Smith & Wesson Holding Corp. bought Missouri-based Battenfield Technologies Inc. for $130.5 million in cash. Battenfield Technologies Inc. sells shooting, reloading, gunsmithing and gun cleaning products under several brand names: Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies and Lockdown Vault Accessories
The corporation issued a news release just after the close of the stock market Thursday, stating:
•Sales were $147.8 million for the three months ending July 31. That is up from $131.86 million for the same time period last year.
•Smith & Wesson accessories division net sales of $13.3 million increased by 29.9 percent from the comparable quarter last year.
•Smith & Wesson grew that business by buying an accessories company, Battenfeld Technologies, Inc., on Dec. 11, 2014.
•For the quarter, net income was $14.4 million, or 26 cents per diluted share, compared with $14.6 million, also 26 cents per diluted share.
•When adjusted for one-time charges, those earnings were $17.7 million, or 32 cents per diluted share, compared with $14.9 million, or 27 cents per share, for the first quarter last year.
•The earnings beat Wall Street expectations.
•Smith & Wesson upgraded its financial outlook for the full fiscal year, now predicting $620 million in sales for the current fiscal year instead of the $610 million it had predicted.
•Smith & Wesson now expects to earn $1.19 a share compared with the $1.14 a share the company had been predicting.
•Smith & Wesson ended the first quarter with no borrowings on its $175.0 million revolving line of credit.
•Inventory is up but Smith & Wesson typically builds inventory in the summer as it prepares for the busy fall hunting and holiday shopping seasons.
Smith & Wesson stock, SWHC on the NASDAQ, was $17.01 a share in after hours trading at 6:15 p.m. Thursday. The stock was up about 5 percent from the $16.22 price at Wednesday's close.
James Debney, Smith & Wesson president and CEO said in a news release:
"Our first quarter results exceeded our expectations for sales and net income in both our firearms and accessories divisions. Higher revenue in our firearms division was driven by strong orders for our M&P 15 Sport rifles, our Thompson/Center Venture bolt-action rifles and our M&P Shield polymer pistols. Our accessories division, which was established less than one year ago, also continued to deliver excellent results, with revenue and gross margins that were positive from the year-ago quarter. During the quarter, we introduced limited edition models of our M&P Bodyguard 380 pistol and Model 642 J-Frame Revolver, and product development teams in both our firearm and accessories divisions continued to prepare several new products and extensions for launch at SHOT Show 2016. Based upon our performance for the first quarter and our current outlook for the remainder of fiscal 2016, we are raising our full year revenue and net income guidance."
Wall Street analysts had predicted a strong quarter from Smith & Wesson. FBI background checks, often used as a measure of gun sales, are on a track to beat their all time high of 21.1 million, which was set in 2013. (pdf)
Founded by Horace Smith and D.B. Wesson in 1852, Smith & Wesson has 1,758 full-time employees. The company's headquarters and factory fill a sprawling facility on Roosevelt Avenue in Springfield.
In May 2014, Smith & Wesson bought Tri Town Precision Plastics, Inc. of Deep River, Connecticut, for $22.8 million. Tri Town had been a major supplier of plastic parts for Smith & Wesson, which at the time said it was trying to vertically integrate its operations and secure its supply chain.
In December 2014, Smith & Wesson Holding Corp. bought Missouri-based Battenfield Technologies Inc. for $130.5 million in cash. Battenfield Technologies Inc. sells shooting, reloading, gunsmithing and gun cleaning products under several brand names: Caldwell Shooting Supplies, Wheeler Engineering, Tipton Gun Cleaning Supplies and Lockdown Vault Accessories
