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Smith & Wesson Holding grows 27.4% in first quarter of 2006
16 Jun '06
9 min read
It should also be noted that fiscal 2006 included a $3.1 million environmental reserve reduction, which accounted for $1.9 million, or $0.05 per diluted share, of fiscal 2006 net income. Excluding this adjustment, net income is expected to increase between 84 percent and 99 percent. This increase is expected to result from higher sales volume, gross margin improvement to 34 percent, and a decline in operating expenses as a percentage of sales and licensing.
We expect cash flow in fiscal 2007 of approximately $14.0 million. Based upon the timing of scheduled payments for insurance and profit sharing and our expectation that the bulk of capital expenditures will occur during the first half of the fiscal year, we expect our cash flow to become positive in the third quarter of fiscal 2007.
We expect capital expenditures in fiscal 2007 of $8.0 million, funded entirely by cash flow from operations. Capital expenditures for fiscal 2007 are based upon growth in our core business and exclude any new business opportunities we may pursue.
Golden concluded, "Our performance in fiscal 2006 exceeded expectations. In fiscal 2007, we should see the full impact of the introduction of our M&P pistol line, with new models and calibers, and we should also see the full year benefit of the M&P 15 rifle, with a Performance Center version scheduled for launch early in fiscal 2007. With our team assembled, a well-established core business in place, new products in ourportfolio, and the strength of the Smith & Wesson brand in hand, we look forward to driving our company to its full potential in the areas of safety, security, protection and sport."
Smith & Wesson Holding Corp, through its subsidiary Smith & Wesson Corp, is one of the world's largest manufacturers of quality handguns, law enforcement products and firearm safety/security products. It also provides shooter protection, knives, apparel, footwear and other accessory lines.
We expect cash flow in fiscal 2007 of approximately $14.0 million. Based upon the timing of scheduled payments for insurance and profit sharing and our expectation that the bulk of capital expenditures will occur during the first half of the fiscal year, we expect our cash flow to become positive in the third quarter of fiscal 2007.
We expect capital expenditures in fiscal 2007 of $8.0 million, funded entirely by cash flow from operations. Capital expenditures for fiscal 2007 are based upon growth in our core business and exclude any new business opportunities we may pursue.
Golden concluded, "Our performance in fiscal 2006 exceeded expectations. In fiscal 2007, we should see the full impact of the introduction of our M&P pistol line, with new models and calibers, and we should also see the full year benefit of the M&P 15 rifle, with a Performance Center version scheduled for launch early in fiscal 2007. With our team assembled, a well-established core business in place, new products in ourportfolio, and the strength of the Smith & Wesson brand in hand, we look forward to driving our company to its full potential in the areas of safety, security, protection and sport."
Smith & Wesson Holding Corp, through its subsidiary Smith & Wesson Corp, is one of the world's largest manufacturers of quality handguns, law enforcement products and firearm safety/security products. It also provides shooter protection, knives, apparel, footwear and other accessory lines.
Smith & Wesson Holding Corporation
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