Smith & Wesson Holding Corp. said preliminary net sales for the fiscal fourth quarter ended April 30 were $179 million, an increase of 38 percent over the comparable quarter last year. Earnings reached 47 cents a share, up from 27 cents earned in the prior fiscal year.

Wall Street on average had been expecting earnings of 40 cents a share on revenues of $170.7 million.

Preliminary net sales for fiscal 2013 year were $588 million, an increase of 43 percent over fiscal 2012. Earnings are expected to reach $1.22 per share compared, more than double net income of 40 cents for the prior year. Full results were planned for June 13.

The gun maker ended the fiscal year with a cash balance of $100.5 million.

Smith & Wesson also indicated that it had entered into agreements to sell to institutional investors $75.0 million aggregate principal amount of newly issued 5.875 percent senior notes due 2017. The notes will be issued in exchange for approximately $42.8 million aggregate principal amount of the company’s 9.50 percent senior notes due 2016. The transaction will result in net cash to the company totaling approximately $25.0 million.  

The sale of the notes is expected to take place on or about June 17, subject to customary closing conditions.

Finally, the company’s board approved the repurchase of up to $100.0 million of the company’s common stock. In December 2012, $35.0 million in stock repurchases were approved and the company subsequently repurchased 2.1 million shares for $20.0 million, utilizing cash on hand.  The $100.0 million repurchase program replaces the remaining $15.0 million authorized in December 2012. Depending on its stock price and the number of shares purchased, the program could reduce its outstanding shares of common stock by approximately 15 percent.

“The successful execution of our growth strategy and strong balance sheet have allowed us to take steps to optimize our capital structure, said James Debney, president and CEO of Smith & Wesson. With fiscal year 2013 results that exceeded guidance and $100.5 million cash on hand at the end of the fiscal year, we will recapitalize our existing debt on highly favorable terms, providing a capital structure that allows us to analyze opportunities for strategic investments.

He added that the debt exchange and the stock buyback program together are expected to be accretive, thereby increasing stockholder value while giving us financial flexibility to be strategically opportunistic.”