Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC), a leader in firearm manufacturing and design, today announced financial results for the fiscal fourth quarter and full year ended April 30, 2016.

Fourth Quarter Fiscal 2016 Financial Highlights

• Quarterly net sales were $221.1 million, an increase of 22.2% over the fourth quarter last year. Firearms division net sales of $203.7 million increased by 22.4% over the comparable quarter last year. Accessories division net sales of $17.5 million increased by 19.8% over the comparable quarter last year.
• Gross margin for the quarter was 41.6% compared with 37.1% for the comparable quarter last year.
• Quarterly GAAP net income was $35.6 million, or $0.63 per diluted share, compared with $21.9 million, or$0.40 per diluted share, for the comparable quarter last year. Fourth quarter 2016 and 2015 GAAP net income per diluted share included an expense of $1.7 million and $1.5 million, respectively, for amortization, net of tax, related to the Battenfeld Technologies, Inc. (BTI) acquisition.
• Quarterly non-GAAP net income was $37.4 million, or $0.66 per diluted share, compared with $24.9 million, or $0.45 per diluted share, for the comparable quarter last year.
• Quarterly non-GAAP Adjusted EBITDAS was $68.7 million, or 31.1% of net sales.

Full Year Fiscal 2016 Financial Highlights

• Full year net sales totaled $722.9 million, an increase of 31.0% from last year. Firearms division net sales were $657.6 million, an increase of 23.8% from last year. Accessories division net sales were $65.3 million, an increase from $20.6 million from last year, a year in which the company acquired BTI and therefore reported only five months of accessories division sales in 2015.
• Full year gross margin was 40.6% compared with 35.3% last year.
• Full year GAAP income from continuing operations was $94.0 million, or $1.68 per diluted share, compared with $49.8 million, or $0.90 per diluted share, last year.
• Full year non-GAAP income from continuing operations was $1.83 per diluted share, compared with$1.02 per diluted share last year.
• Full year non-GAAP Adjusted EBITDAS from continuing operations was $202.4 million, or 28.0% of net sales.

James Debney, Smith & Wesson Holding Corporation President and Chief Executive Officer, commented, "Our solid fourth quarter and full year performance further validates our vision, which is to become the leading provider of quality products for the shooting, hunting, and rugged outdoor enthusiast. We continued to successfully execute on our long-term strategy, while delivering financial and operational results that set a number of new company records. In our firearms division, we made several important new product introductions and continued to leverage our flexible manufacturing model, allowing us to benefit from strong consumer demand. In our first full year of accessories revenue, we expanded our product portfolio organically as well as through a targeted acquisition, delivering double-digit top line revenue growth. Looking ahead to fiscal 2017, we expect that a strong balance sheet, combined with our track record of successful acquisitions, positions us well for an expanding role in the market for products for shooting, hunting, and rugged outdoor enthusiasts."

Jeff Buchanan, Executive Vice President, Chief Financial Officer, and Chief Administrative Officer, commented, "Gross margin performance remained strong throughout fiscal 2016, driven by robust volumes in our firearms division and favorably impacted by the strong gross margins in our accessories division. In fiscal 2016, we generated $168.6 million in operating cash flow, establishing a new company record. We ended the year with cash and cash equivalents totaling $191.3 million and total bank debt and Senior Notes of $175.3 million, leaving us with zero net debt. In fiscal 2017, we expect to use the strength of our balance sheet, including our unused $175 million revolving line of credit, to fuel growth opportunities, both organic and inorganic."

About Smith & Wesson

Smith & Wesson Holding Corporation (NASDAQ Global Select: SWHC) is a leading manufacturer of firearms and a provider of quality accessory products for the shooting, hunting, and rugged outdoor enthusiast, delivering a broad portfolio of quality firearms and shooting, hunting and outdoor accessories, to the global consumer and professional markets. The company's firearms division brands include Smith & Wesson®, M&P®, and Thompson/Center Arms™. As a leading provider of shooting, hunting, and outdoor accessories, including reloading, gunsmithing, gun cleaning supplies, tree saws, and vault accessories, the company's accessories division produces innovative, high-quality products under several brands, including Caldwell® Shooting Supplies, Wheeler® Engineering, Tipton® Gun Cleaning Supplies, Frankford Arsenal® Reloading Tools, Lockdown® Vault Accessories, Hooyman® Premium Tree Saws, BOG POD®, and Golden Rod® Moisture Control. The company's manufacturing services division provides forging, machining, and precision plastic service for outside businesses. Smith & Wesson facilities are located in Massachusetts, Maine, Connecticut, and Missouri. For more information on Smith & Wesson, call (800) 331-0852 or log on to www.smith-wesson.com.