Author Topic: Are We Coming Into A "Gun Glut"?  (Read 5739 times)

Rastus

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Re: Are We Coming Into A "Gun Glut"?
« Reply #20 on: August 28, 2014, 05:06:56 PM »
Bilt is on to something with the gun glut I think.  S&W is saying the quarter they are in now will be hit the most and wit their modern sporting rifles.  Yep, it's a gonna be a good time to buy an AR right now.


http://ir.smith-wesson.com/phoenix.zhtml?c=90977&p=irol-newsArticle&ID=1961164&highlight=

Smith & Wesson Holding Corporation Reports First Quarter Fiscal 2015 Financial Results


SPRINGFIELD, Mass., Aug. 26, 2014 /PRNewswire/ -- Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, today announced its financial results for the fiscal 2015 first quarter ended July 31, 2014.

First Quarter Fiscal 2015 Financial Highlights
•Net sales for the first quarter were $131.9 million, a decrease of $39.2 million from the first quarter last year, primarily due to lower sales of long guns, including modern sporting rifles, which drove 87% of the first quarter decline.  As expected, sales of long guns, including modern sporting rifles, were negatively impacted by lower consumer demand.  Handgun sales showed continued consumer demand for the company's small concealed carry polymer pistols and revolvers, although those sales were more than offset by lower sales of large frame polymer pistols.
•Gross profit for the first quarter was $49.1 million, or 37.2% of net sales, compared with gross profit of $72.8 million, or 42.6% of net sales, for the comparable quarter last year.  While gross profit margin was favorably impacted by the company's acquisition of the assets of its principal injection molding supplier in May, total gross profit declined as a result of reduced sales volumes of modern sporting rifles and related decreases in fixed-cost absorption, combined with three fewer production days versus the first quarter last year.
•Operating expenses for the first quarter were $23.3 million, or 17.7% of net sales, compared with operating expenses of $24.8 million, or 14.5% of net sales, for the first quarter of 2014.
•Operating income for the first quarter was $25.8 million, or 19.5% of net sales, compared with operating income of $48.0 million, or 28.1% of net sales, for the first quarter of 2014. 
•Income from continuing operations for the first quarter was $14.6 million, or $0.26 per diluted share, compared with income from continuing operations of $26.5 million, or $0.40 per diluted share, for the first quarter of 2014.
•Non-GAAP Adjusted EBITDAS from continuing operations for the first quarter was $33.6 million, compared with $55.2 million for the first quarter last year.
•Operating cash generated for the first quarter was $10.8 million. Internal capital spending totaled $14.6 million, and the company used an additional $24.1 million of cash to acquire the assets of its principal injection molding supplier. 
•Cash and cash equivalents as of July 31, 2014 were $83.5 million, up from $68.9 million at April 30, 2014.

Jeffrey D. Buchanan, Smith & Wesson Holding Corporation Executive Vice President and Chief Financial Officer, stated, "We continued to add flexibility to our balance sheet in the first quarter by raising $75.0 million in proceeds through the issuance of our new 5.000% Senior Notes due 2018. We also leveraged our strong cash position to generate value for our stockholders by completing all share repurchases authorized by our Board of Directors under our share repurchase program.  During the quarter, we repurchased $30.0 million of our common stock. Since December 2012, we have repurchased a total of 14.4 million shares of our common stock for $165.0 million, representing a total reduction in shares outstanding of 21.7%."

James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, stated, "Our results for the first quarter met our expectations and reflected continued execution on our strategy.  We launched our new M&P®22 Compact, a tactical rimfire pistol that delivers the popular features of our M&P centerfire pistol in a smaller scale version.  We also joined forces with Crimson Trace® to introduce enhanced, integrated laser sighting systems for our popular line of M&P BODYGUARD® handguns.  Operationally, we completed the acquisition of the assets of our principal injection molding supplier, an action that strengthened our business and contributed favorably to gross margin and net income in the quarter." 

Debney continued, "We believe that the current environment reflects high inventories industry-wide resulting from channel replenishment that occurred following an earlier surge in consumer buying.  That environment, combined with typical seasonality that slows consumer buying activity during the summer, is causing us to lower our financial outlook for fiscal 2015.   We expect that these conditions will have the largest impact on our second fiscal quarter, especially on sales of our modern sporting rifles, and that we will return to a more normalized environment in the second half of our current fiscal year.  We believe that our operational and financial strength and flexibility will benefit us in the short term, and we remain focused on our strategy to take handgun market share.  We expect the industry will continue to deliver growth over the long term."
 
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GASPASSERDELUXE

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Re: Are We Coming Into A "Gun Glut"?
« Reply #21 on: August 28, 2014, 07:00:39 PM »
Went shooting this morning and M&P prices were marked down about $40 off the regular selling price.

billt

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Re: Are We Coming Into A "Gun Glut"?
« Reply #22 on: August 28, 2014, 07:14:19 PM »
This is the first time this has happened to me at Cabela's EVER. I went in and bought some ammo, and had a 10% off coupon with me. After I rang out the cashier handed me my receipt.....Along with a $25.00 Off on my next purchase of $100.00 or more.

That's at least another 25% off. I'll go there next week and use it. There wasn't hardly anyone in the place when I was there around 10:00 AM. Racks were full of guns and shelves were chock full of ammunition. All at good prices. I don't think there is any question gun and ammo buying has tapered off....Way off in recent months.

blackwolfe

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Re: Are We Coming Into A "Gun Glut"?
« Reply #23 on: August 30, 2014, 11:53:06 PM »
NICS checks were down 14%.
"We the people are the rightful masters of both Congress and the courts, not to overthrow the Constitution, but to overthrow the men who pervert the Constitution. "    Abraham Lincoln
 


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