Steven Mace
03-18-2003, 12:19 AM
March 17, 2003 05:30 PM EST, Eastern US
Smith & Wesson Reports 31% Increase in Revenues and $0.29 increase in EPS for the Nine Months Ending January 31
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 17, 2003--Smith & Wesson Holding Corporation (AMEX:SWB) 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.
About Smith & Wesson Holding Corporation
Smith & Wesson Holding Corporation is the parent company of Smith & Wesson Corp., one of world's leading producers of quality handguns, law enforcement products and firearm and safety products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company's products with confidence for 150 years. Backed by a highly experienced engineering staff, the Specialty Services division offers high quality custom manufacturing capabilities to many industrial clients. Smith & Wesson Corp. also manufactures handcuffs and markets Smith & Wesson apparel and other products.
Comprehensive information about Smith & Wesson Holding Corporation is available at www.smithandwesson.com.
(a) EBITDA is revenue minus expenses (excluding tax, interest, depreciation and amortization). EBITDA is often used to analyze a company's relative profitability within an industry because it eliminates the effects of financing.
Safe Harbor Statement
Statements in this press release about the company's future expectations, including: increased sales from the February SHOT Show, anticipated delivery of 500 Smith & Wesson Magnum(R), carrying of handguns by pilots, and improving regulatory environment and all other statements in this release, other than historical facts, are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Act of 1934, as that term is defined in the Private Securities Reform Act of 1995. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as failure of various distributors to ultimately place orders, delay of delivery of the 500 Smith & Wesson Magnum(R), softening of demand, changes in governmental regulations, adverse court opinions, and failure to realize licensing opportunities, among other factors. Such "forward-looking statements" are subject to risks and uncertainties set forth from time to time in the Company's SEC reports, including the report on Form 10-KSB for the year ended April 30, 2002 and Forms 10-QSB for the quarters ended July 31, 2002, October 31, 2002 and January 31, 2003.
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Steve Mace
Smith & Wesson Reports 31% Increase in Revenues and $0.29 increase in EPS for the Nine Months Ending January 31
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--March 17, 2003--Smith & Wesson Holding Corporation (AMEX:SWB) 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.
About Smith & Wesson Holding Corporation
Smith & Wesson Holding Corporation is the parent company of Smith & Wesson Corp., one of world's leading producers of quality handguns, law enforcement products and firearm and safety products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company's products with confidence for 150 years. Backed by a highly experienced engineering staff, the Specialty Services division offers high quality custom manufacturing capabilities to many industrial clients. Smith & Wesson Corp. also manufactures handcuffs and markets Smith & Wesson apparel and other products.
Comprehensive information about Smith & Wesson Holding Corporation is available at www.smithandwesson.com.
(a) EBITDA is revenue minus expenses (excluding tax, interest, depreciation and amortization). EBITDA is often used to analyze a company's relative profitability within an industry because it eliminates the effects of financing.
Safe Harbor Statement
Statements in this press release about the company's future expectations, including: increased sales from the February SHOT Show, anticipated delivery of 500 Smith & Wesson Magnum(R), carrying of handguns by pilots, and improving regulatory environment and all other statements in this release, other than historical facts, are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Act of 1934, as that term is defined in the Private Securities Reform Act of 1995. It is important to note that actual results and ultimate corporate actions could differ materially from those in such forward-looking statements based on such factors as failure of various distributors to ultimately place orders, delay of delivery of the 500 Smith & Wesson Magnum(R), softening of demand, changes in governmental regulations, adverse court opinions, and failure to realize licensing opportunities, among other factors. Such "forward-looking statements" are subject to risks and uncertainties set forth from time to time in the Company's SEC reports, including the report on Form 10-KSB for the year ended April 30, 2002 and Forms 10-QSB for the quarters ended July 31, 2002, October 31, 2002 and January 31, 2003.
http://home.businesswire.com/portal/site/home/index.jsp?na=&na=&na=&headlineSearchConfigBO=&updateSearchKeyword=true&searchKeyword=smith+and+wesson&searchWholeSite=false
Steve Mace