Freedom Group Inc., which is preparing for an initial public offering, reported net sales of $174.2 million for the quarter ended March 31, down $18 million, or 9.4% from the same period a year earlier, according to unaudited financial figures released in the company’s amended registration statement.
Net income reached $5.6 million, down 57.6% from $13.2 million reported in the year earlier quarter. On an adjusted basis, EBITDA was $29.6 million, down from $36.5 million a year earlier. Gross profit was $115.3 million, or 66.2% of net sale, compared to $132.7 million, or 69% of net sales in the first quarter of 2009. Operating income was $16.6 million, down 39% from $27.3 million in the year earlier quarter.
Freedom Group Inc. owns the Bushmaster, Remington, The Parker Gun, DPMS Panther Arms, Marlin and other gun and ammo brands. The company was put together through a series of acquisitions since 2006 by the private equity firm Cerberus Capital, which has filed to take the company public. The company believes it has the number one market share in shotfuns, traditional rifles, modern sporting rifles and ammunition in the United States.
