Remington Outdoor Co., also known as Freedom Group Inc., reported sales jumped 5.1 percent  to $353.3 million from $233.8 million a year ago. Net income reached $36.3 million against a loss of $21.9 million a year ago.

The year-ago period included a pre-tax non-recurring charge of $54.3 million from the loss on extinguishment of debt.

The company's brands include: Remington, Bushmaster Firearms, DPMS/Panther Arms, Marlin, H&R, The Parker Gun, Mountain Khakis, Advanced Armament Corp., Dakota Arms, Para USA and Barnes Bullets.

Firearms

Net sales for the three months ended June 30, 2013 were $215.5 million, an increase of $69.7 million, or 47.8 percent, as compared to the three months ended June 30, 2012.

All of our firearms categories have experienced sales increases lead by centerfire of $48.9 million, and shotgun, handgun, rimfire and other firearms and firearms products of $7.4 million, $5.2 million, $3.2 million and $5.0 million, respectively.

While concern about more restrictive government legislation contributed to the increased sales volumes, we continue to experience increases across all firearms platforms due to increased usage in recreational, shooting sports and home defense. We have been able to meet the increased demand with our capacity improvements over the prior year.

Ammunition

Net sales for the three months ended June 30, 2013 were $110.7 million, an increase of $31.1 million, or 39.1 percent, as compared to the three months ended June 30, 2012. Sales of centerfire ammunition increased $11.4 million, while sales of shotshell ammunition increased $10.1 million. In addition, sales of rimfire ammunition increased $4.2 million, while sales in our other product lines increased $5.4 million. These increases were primarily the result of increased market demand supported by improved factory production.

All Other


Net sales were $27.0 million in all other businesses, which includes a 75 percent stake in Mountain Khakis, increased $18.6 million, or 221.4 percent, as compared to the prior year period. The $18.6 million increase is primarily due to higher sales volumes in our various accessories and apparel businesses, including the impact of four firearms accessories businesses acquired since November, 2012.

Gross margins improved to 36.3 percent from 34.2 percent in the year-ago period. SG&A expenses were reduced to 16.4 percent of sales from 19.3 percent a year ago.

The filing also noted that Ronald E. Kolka was named chief financial officer of the company on August 6, 2013. Kolka has served as acting Chief Financial Officer of the company since January 5, 2012. In addition, Kolka was appointed to serve as a director of the company on February 11, 2013. Kolka served as the chief financial officer for Cerberus Operations and Advisory company LLC from December 2009 until being named acting chief financial officer of the company. Prior to joining Cerberus, Kolka served as chief financial officer for Chrysler Motors.

Remington also noted in a filing, “A competitive sales process continues based on the Dec. 18, 2012 Cerberus Capital Management announcement of its intention to sell its investment in our company. Lazar d Freres & Co. LLC has been engaged to assist the company in its sale process.”

The full 10Q filing is here.