This firearms manufacturer grew its revenues and earnings in the third quarter and just authorized a $30 million stock buyback plan.
Smith & Wesson Holding Corp. (SWHC)
from FXC Newsletter
Smith & Wesson Holding Corp. (SWHC) just posted its third quarter fiscal 2014 financial highlights:
Net sales were $145.9 million, up 7.1% from the third quarter last year. When excluding Walther products that were sold in the prior year pursuant to a distribution agreement that has since ended, net sales growth was 16.7%. Handgun sales, which include sales of the company’s popular M&P® pistols, grew 29.9%
SWHC’s gross profit was $58.7 million, or 40.2% of net sales, compared with gross profit of $49.9 million, or 36.6% of net sales, for the comparable quarter last year.
Operating expenses were $27.5 million, or 18.9% of net sales, compared with operating expenses of $21.9 million, or 16.1% of net sales, for the third quarter last year. A significant portion of the operating expense increase related to the company’s ERP implementation, which commenced in the second quarter.
Income from continuing operations was $20.1 million, or $0.35 per diluted share, compared with $17.5 million, or $0.26 per diluted share.
Non-GAAP Adjusted EBITDAS (earnings before interest, taxes, depreciation, amortization and stock-based compensation) from continuing operations for the third quarter increased to $37.5 million from $33.3 million for the third quarter last year. The company generated operating cash of $29.6 million and used $15.3 million in cash from financing activities, primarily relating to its stock buyback program.
It was a very good quarter from one of our favorite companies. We are purchasing shares at these levels.
Nick Curzio, FXC Newsletter, www.FXCnewsletter.com, March Interim 2014