Smith & Wesson Holding Corporation, parent of the legendary 150-year-old handgun maker, Smith & Wesson Corp. reported revenues for the nine months ending January 31, 2003 of $69.0 million, an increase of 30.7% from the comparable period last year.
The increase in net sales resulted primarily from increased demand for handgun product lines, both domestically and internationally. EBITDA(a) for the first nine months of this fiscal year was $3.1 million compared to $0.4 million for the same period last year. Earnings per share for the nine month period were $.01 as compared to fiscal 2002 loss per share of $(.28).
Revenue for the third quarter of fiscal 2003 and 2002 was $24.9 million and $21.6 million, respectively. Resulting earnings per share for the same periods were $.01 versus $.07. The quarterly period to period difference is due to increased SG&A expenses associated with the Company’s efforts to recapture market share through existing product lines and the development of nine new firearm products, and also included consulting fees to enhance manufacturing and marketing efficiencies.
Bob Scott, chairman of Smith & Wesson Corp. said, “Fiscal year 2003 continues on track with our strategic plans and forecasted progress. Smith & Wesson is successfully repositioned and aggressively pursuing market opportunities. Results to date reflect our intense focus on the core business, related opportunities and synergistic expansion. We continue to win market share and make progress through product introductions and the pursuit of well-aligned licensing opportunities.”
Roy Cuny, president and CEO of Smith & Wesson Corp. further emphasized progress at the operating level noting, “Sales resulting from the February SHOT Show far exceeded our expectations. The 500 Smith & Wesson Magnum(R), the SW1911, as well as the other new product introductions, resulted in a significant increase in orders. In concert with this robust increase in business, Smith & Wesson continues to implement lean manufacturing, supply chain management and other best practices to reduce costs and increase efficiency. This approach guarantees we deliver maximum value to the market with the highest quality products and services.”
Smith & Wesson’s strategies focus on the many opportunities associated with the Company’s brand name. Since May 2001, when Smith & Wesson again became American-owned, the Company has successfully recaptured market share, created positive relationships with industry organizations, introduced new products, engaged in meaningful licensing agreements and has moved its S.W.A.T. (advanced technologies) division forward. The Company’s plan is to continue its focus on driving profitable revenue growth and increasing cash flow while driving discretionary costs out of the core operations. The Company is also focused on evaluating all appropriate opportunities to restructure the balance sheet to best position the Company to pursue strategically aligned expansion opportunities.
Favorable regulatory changes for the firearms industry were realized during the quarter. The federal government has announced a test program for commercial airline pilots to carry handguns and several of the Company’s products are being considered for the program. In addition, our recent victory in the California case is the latest in a string of vindications, and supports the long-held principle that responsible, law abiding manufacturers of highly regulated, non-defective products can not be held accountable when criminals misuse their legally sold products.
The Company’s stock trades on the Amex under the stock symbol SWB.
