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18 Jun 15. Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, announced financial results for the fiscal fourth quarter and full fiscal year ended April 30, 2015. Fourth Quarter Fiscal 2015 Financial Highlights
* Quarterly net sales were a record $181.0m, an increase of 6.2% from the fourth quarter last year. Firearm division net sales of $166.4m decreased by 2.4% from the comparable quarter last year, which was more than offset by $14.6m of net sales related to the company’s new accessories division, which was established in connection with the acquisition of Battenfeld Technologies, Inc. (BTI) on December 11, 2014.
* Quarterly GAAP income from continuing operations was $21.9m, or $0.40 per diluted share, compared with $24.9m, or $0.44 per diluted share, for the fourth quarter last year.
* Quarterly non-GAAP income from continuing operations was $24.9m, or $0.45 per diluted share, compared with $26.5m, or $0.47 per diluted share, for the fourth quarter last year.
* Quarterly non-GAAP Adjusted EBITDAS from continuing operations was $50.8m, or 28.1% of net sales.
Full Year Fiscal 2015 Financial Highlights
* Full year net sales totaled $551.9 m, a decrease of 11.9% from last year. Firearm division net sales were $531.2 m, a decrease of 15.2% from last year, and accessories division net sales were $20.6m. The accessories division consists entirely of the recently acquired BTI. Therefore, the accessories division had no sales in the prior year and less than five months of net sales in fiscal 2015.
* Full year GAAP income from continuing operations was $49.8m, or $0.90 per diluted share, compared with $88.6m, or $1.47 per diluted share, last year.
* Full year non-GAAP income from continuing operations was $1.02 per diluted share, compared with $1.55 per diluted share last year.
* Full year non-GAAP Adjusted EBITDAS from continuing operations totaled $132.5m, or 24.0% of net sales.
James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, said, “We are very pleased with our fiscal 2015 results, particularly our fourth quarter performance. During fiscal 2015, we marked a number of achievements as we remained focused on executing our long-term strategy. We moved further into the hunting and shooting accessories market by acquiring BTI and we strengthened our supply chain with the vertical integration of our principal injection molding supplier. Both acquisitions were accretive to gross margins. Our focus on gross margins resulted in a 37.1% gross margin for the fourth quarter (38.4% when the 1.3% accounting-related impact of the BTI acquisition is excluded), which was within our targeted range. Looking forward, we anticipate further sales and earnings growth in fiscal 2016 as we continue to position our company for long-term success.”
Jeffrey D. Buchanan, Smith & Wesson Holding Corporation Executive Vice President and Chief Financial Officer, said, “Earlier in the fiscal year, we had stated that a company focus was to reduce inventories and we succeeded in reducing those inventories by $20.2m during the fourth quarter. As a result, robust cash flow from operations during the fourth quarter of $84.9 m allowed us to fully pay down the $100.0m revolving credit line we had used to facilitate the purchase of BTI and still end the quarter with $42.2m in cash. Earlier this week, we redeemed all of our 5.875% Senior Notes using the proceeds of a new $105.0m five-year term loan, which has a favorable interest rate. These combined actions are focused on creating value for our shareholders by optimizing our capital efficiency, lowering our weighted average cost of capital, and strengthe