Remington Arms Company, Inc. reported net sales for the fourth quarter of fiscal 2008 were up 36.3% to $163.0 million from $119.6 million in the year-ago period. Due in large part to a $47.4 million non-cash impairment charge related to goodwill, the company reported a net loss of $40.7 million compared with a net loss of $1.1 million last year.
Selling, general and administrative costs were down 40 basis points and totaled 16.1% of sales in the quarter. Gross margins increased 470 basis points to 25.4% of sales.
For the year, adjusted EBITDA was $70.8 million as compared to $61.3 million for 2007. Management said the yearly increase in net sales was primarily a result of Remingtons February 2008 acquisition of The Marlin Firearms Company as well as increased sales of the R-15 and R-25, which are assault-style repeating rifle lines introduced last year.
According to the companys most recent SEC filing, management expressed concern about the continued volatility in the price of lead, copper and steel, and foresees this as a potential challenge to the future of the companys financial position.
As of December 31, the outstanding amount of the companys credit facility was $51.8 million. The outstanding amount represents incremental funds borrowed by the company as a cautionary measure in response to the volatility of the financial market. Cash on hand at year-end was $66.7 million as compared to $23.4 million in 2007.
