Smith & Wesson Holding grows 27.4% in first quarter of 2006
16 Jun '06
9 min read
Net cash flow from operations for fiscal 2006 was $11.5 million compared with $3.2 million for fiscal 2005. Capital expenditures for fiscal 2006 were $15.6 million. We also repaid $2.5 million in short-term borrowings that were outstanding at the end of the third quarter.
Michael F. Golden, Smith & Wesson President and CEO, said, "Our results for the year reflected solid execution on the strategy to grow our core handgun business, to diversify our company, and to enter into new markets with new products. I am extremely pleased with our progress in establishing Smith & Wesson as a global supplier in the business of safety, security, protection and sport."
Core Firearms Growth
Golden continued, "Our 27.4 percent increase in revenue was driven by a number of initiatives. Our focus on securing business from the federal government was highly successful and resulted in four orders during the fiscal year from the United States military for shipment to the Afghanistan National Police. These orders intensified our drive to seek out opportunities with other federal government agencies."
"We restructured our law enforcement sales organization during the year and introduced the Military & Police (M&P) pistol and rifle lines. These actions were intended to further penetrate domestic law enforcement markets with a new line of products designed especially to address the needs of professionals.
As of today, we have received commitments for the M&P pistol from 58 separate law enforcement agencies. Twenty-three of those agencies placed orders for the new M&P polymer pistol; another 29 have approved the M&P for purchase, pending budgetary considerations; and an additional six have placed the M&P on their approved lists for on- or off-duty carry."