Smith & Wesson Brands Inc. reported significant improvement in earnings in the third quarter ended January 31 as revenues jumped 102.2 percent.

Third Quarter Fiscal 2021 Consolidated Financial Highlights

  • Quarterly net sales were $257.6 million compared with $127.4 million for the comparable quarter last year, an increase of 102.2 percent;
  • Gross margin for the quarter was 42.6 percent compared with 28 percent for the comparable quarter last year;
  • Quarterly GAAP net income was a record $62.3 million, or $1.12 per diluted share, compared with $4.2 million, or $0.08 per diluted share, for the comparable quarter last year;
  • Quarterly non-GAAP net income was $62.4 million, or $1.12 per diluted share, compared with $7.8 million, or $0.14 per diluted share, for the comparable quarter last year;
  • GAAP to non-GAAP adjustments for income exclude costs related to the spin-off of the outdoor products and accessories business, COVID-19 related expenses, and other costs; and
  • Quarterly non-GAAP Adjusted EBITDA was $89.8 million, or 34.9 percent of net sales, compared with $15.0 million, or 11.8 percent of net sales, for the comparable quarter last year.

Mark Smith, president and chief executive officer, commented, “I could not be more proud of our dedicated American workforce as, for the third time in a row, they delivered a record-breaking quarter for our great historic company. Over the past year, millions of our fellow Americans from all walks of life have chosen to empower themselves by exercising their 2nd Amendment rights for the first time, and our loyal employees have risen to the challenge, delivering over 1.8 million units in the first three quarters of our fiscal year alone, ensuring that these new members of the shooting sports community were able to choose the highest quality, innovative firearms that Smith & Wesson has been known for since 1852. All of this was accomplished while implementing and maintaining aggressive safety measures and process changes to keep safe in the midst of the COVID-19 pandemic.”

Deana McPherson, executive vice president and chief financial officer, commented, “Smith & Wesson’s record-breaking financial performance enabled us to generate $60 million cash from operations during the quarter. This allowed us to complete a $50 million share-repurchase program, pay our second-quarter dividend and continue to invest in capital, all while growing our cash-on-hand by $4.1 million during the quarter. I am pleased to announce that our Board has authorized a new $100 million share repurchase program and a $0.05 per share dividend to stockholders of record as of March 17, 2021, with payment to be made on March 31, 2021.”

Photo courtesy Smith & Wesson