As, many other firearm manufacturers Smith & Wesson has seen great returns during the Covid lockdowns and social unrest in 2020. That uncertainty and unrest lead to many Americans becoming first time gun owners. In 2020, there was over 8 million new gun owners in this country according to the NRA. Those surging numbers has seen a direct correlation in Smith & Wesson profits.
On March 4th, Smith & Wesson released their earnings press release to the general public. In that press release the company discusses keeping up with the supply and demand of the market by selling 1.8 million units in the first three quarters of last fiscal year. The company also seen a massive 102% increase for first time gun buyers.
Below, is the full press release from Smith & Wesson.
SPRINGFIELD, Mass., March 4, 2021 /PRNewswire/ — Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the third quarter of fiscal 2021 ended January 31, 2021. On August 24, 2020, the company completed the previously announced spin-off of its outdoor products and accessories business. Therefore, as of the second quarter, all historical financial information for that business is reported as discontinued operations. Unless otherwise indicated, any reference to income statement items refers to results from continuing operations.
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%. Gross margin for the quarter was 42.6% compared with 28% 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. For a detailed reconciliation, see the schedules that follow in this release.
Quarterly non-GAAP Adjusted EBITDAS was $89.8 million, or 34.9% of net sales, compared with $15.0 million, or 11.8% 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 pandemic.”
Deana McPherson, Executive Vice President and Chief Financial Officer, commented, “Smith & Wesson’s record-breaking financial performance enabled us to generate $60 million of cash from operations during the quarter. This allowed us to complete a $50 million dollar 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 dollar 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.”
The amount and timing of any repurchases will depend on a number of factors, including price, trading volume, general market conditions, legal requirements, and other factors. The repurchases may be made on the open market, in block trades, or in privately negotiated transactions. Any shares of common stock repurchased under the program will be considered issued but not outstanding shares of the company’s common stock.
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Hello, everyone and welcome to The Loadout Blog. The purpose of this website is to share educate, inform, and build a lasting culture around firearms. I want to create a hub of reliable, cohesive, and relevant material for today's shooter. I am seeking to appeal to all demographics so from the novice, to experienced, along with LE and military communities. I am here to be transparent and honest on all matters discussed or chronicled on this site. I will post content once a week at minimum or more often if time allows.
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