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Smith & Wesson Holding Corp Reports Operating Results (10-Q)

December 08, 2010 | About:
10qk

10qk

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Smith & Wesson Holding Corp (SWHC) filed Quarterly Report for the period ended 2010-10-31.

Smith & Wesson Holding Corp has a market cap of $246.2 million; its shares were traded at around $4.105 with a P/E ratio of 12.5 and P/S ratio of 0.6. SWHC is in the portfolios of Paul Tudor Jones of The Tudor Group, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Net product and services sales for the three months ended October 31, 2010 were $96,321,000, a $13,397,000, or 12.2%, decrease from net product and services sales of $109,718,000 for the three months ended October 31, 2009. Firearm product and services sales decreased for the three months by $9,818,000, or 10.5%, from the three months ended October 31, 2009. Within firearms, all handgun and tactical rifle product lines, except for premium products, were flat or reduced from the prior year quarter as the consumer market has now returned to more normal levels following the significant increase in demand that started in our second quarter of fiscal 2009. Hunting sales increased 26.3% over the prior year quarter on improved black powder and bolt action product sales. Lower beginning backlog combined with a newly reorganized sales force and changing federal funding resulted in reduced perimeter security sales. Perimeter security sales were $12,756,000 for the three months ended October 31, 2010 compared with $16,335,000 for the three months ended October 31, 2009.

Net loss for the three months ended October 31, 2010 was $37,285,000, or $0.62 per fully diluted share, compared with net income of $14,380,000, or $0.22 per fully diluted share, for the three months ended October 31, 2009. The impairment charge recorded in the period had a $0.65 negative impact on basic and fully diluted earnings per share for the three months ended October 31, 2010.

Net product and services sales for the six months ended October 31, 2010 were $191,205,000, a $20,201,000, or 9.6%, decrease from net product and services sales of $211,406,000 for the six months ended October 31, 2009. Firearm product and services sales decreased for the six months by $31,628,000, or 16.4%, from the six months ended October 31, 2009. Within firearms, all handgun and tactical rifle product lines, except for premium products, were flat or reduced from the prior year six month period. Hunting sales increased 16.1% over the prior year six month period on improved black powder and bolt action product sales. Perimeter security sales were $29,877,000 for the six months ended October 31, 2010 compared with $18,450,000 for the six months ended October 31, 2009. The three months ended July 31, 2009 included only the 11 days subsequent to our July 20, 2009 acquisition of USR.

Net loss for the six months ended October 31, 2010 was $31,073,000, or $0.52 per fully diluted share, compared with net income of $26,729,000, or $0.43 per fully diluted share, for the six months ended October 31, 2009. The impairment charge recorded in the period had a $0.65 negative impact on basic and fully diluted earnings per share for the six months ended October 31, 2010.

Sales into our sporting goods distribution channel were approximately $70,528,000 for the three months ended October 31, 2010, a decrease of 6.4% from the comparable quarter last year. Law enforcement firearm sales of $6,018,000 were 24.3% lower than in the comparable quarter last year, which included large orders from the Milwaukee and Detroit police departments. Federal government firearm sales of $666,000 were 41.2% lower than in the comparable quarter last year. International firearm sales for the three months ended October 31, 2010 of $6,190,000 decreased 27.4% from the comparable quarter last year. Perimeter security corporate sales were $1,830,000 while federal government sales were $9,694,000 for the three months ended October 31, 2010. The remaining perimeter security sales related to state and local government and transportation customers.

Sales into our sporting goods distribution channel were approximately $136,447,000 for the six months ended October 31, 2010, a decrease of 14.0% from the comparable period last year. Law enforcement firearm sales of $11,630,000 were 23.0% lower than in the comparable period last year. Federal government firearm sales of $1,727,000 were down $457,000, or 20.9%, from the comparable period last year. International firearm sales of $10,635,000 for the six months ended October 31, 2010 decreased 34.3% from the comparable period last year. Perimeter security corporate sales were $4,360,000 while federal government sales were $23,725,000 for the six months ended October 31, 2010. The remaining perimeter security sales related to state and local government and transportation customers.

Read the The complete Report

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