Smith & Wesson Holding Corporation
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Smith & Wesson Holding Financial Snapshot
Corporation Operating Performance
Fast Facts The company reported revenue of US$412 million
during the fiscal year 2012 (2012). The company's
2100 ROOSEVELT AVENUE, revenue grew at a CAGR of 8.63% during 2008–
Headquarters Address SPRINGFIELD, 01104,United States of 2012, with an annual growth of 20.38% over 2011. In
America 2012, the company recorded an operating margin of
Telephone + 1 800 3310852 10.90%, as against 5.20% in 2011.
Fax + 1 413 7473317 Revenue and Margins
Website www.smith-wesson.com
Ticker Symbol, Stock Exchange SWHC, NASDAQ
Number of Employees 1,356
Fiscal Year End April
Revenue (in US$ million) 412
SWOT Analysis
Strengths Weaknesses
Considerable order backlogs Dependence on key distributors
Impressive financial performance Product recall
Improved liquidity position
Opportunities Threats
Increasing US homeland security
Decline in US defense expenditure
spending
New contracts Government contract compliance
Rapidly changing technology
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Smith & Wesson Holding Corporation - SWOT Profile Page 1
Smith & Wesson Holding Corporation
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 6
2 Analysis of Key Performance Indicators ............................................................................................... 8
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 8
2.2 Key Financial Performance Indicators ............................................................................................................ 11
2.2.1 Revenue and Operating Profit.................................................................................................................... 11
2.2.2 Asset and Liabilities ................................................................................................................................... 12
2.2.3 Operational Efficiency ................................................................................................................................ 13
2.2.4 Solvency ................................................................................................................................................... 14
2.2.5 Valuation ................................................................................................................................................... 15
2.3 Key Competitors ............................................................................................................................................ 16
3 SWOT Analysis ...................................................................................................................................... 17
3.1 SWOT Analysis - Overview ............................................................................................................................ 17
3.2 Strengths ....................................................................................................................................................... 17
3.3 Weaknesses .................................................................................................................................................. 17
3.4 Opportunities ................................................................................................................................................. 18
3.5 Threats .......................................................................................................................................................... 18
4 History .................................................................................................................................................... 19
5 Key Employees ...................................................................................................................................... 21
6 Locations and Subsidiaries .................................................................................................................. 22
6.1 Head Office ................................................................................................................................................... 22
6.2 Other Locations and Subsidiaries .................................................................................................................. 22
7 Appendix ................................................................................................................................................ 23
7.1 Methodology .................................................................................................................................................. 23
7.2 Ratio Definitions ............................................................................................................................................ 23
7.3 Disclaimer ..................................................................................................................................................... 27
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Smith & Wesson Holding Corporation
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 6
Table 2: Key Ratios - Annual ........................................................................................................................................... 8
Table 3: Key Ratios - Interim ......................................................................................................................................... 10
Table 4: Key Capital Market Indicators .......................................................................................................................... 10
Table 5: History ............................................................................................................................................................. 19
Table 6: Key Employees ................................................................................................................................................ 21
Table 7: Locations ......................................................................................................................................................... 22
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Smith & Wesson Holding Corporation
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List of Figures
Figure 1: Revenue and Operating Profit ......................................................................................................................... 11
Figure 2: Financial Position ........................................................................................................................................... 12
Figure 3: Operational Efficiency ..................................................................................................................................... 13
Figure 4: Solvency......................................................................................................................................................... 14
Figure 5: Valuation ........................................................................................................................................................ 15
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Smith & Wesson Holding Corporation
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1 Business Analysis
1.1 Company Overview
Smith & Wesson Holding Corporation (Smith & Wesson) is a leading manufacturer of firearms. The company
manufactures a wide range of revolvers, pistols, tactical rifles, hunting rifles, black powder firearms, handcuffs, and other
related products and accessories. These products are used for safety, security, protection and sport. Smith & Wesson
sells its products to individual customers; and law enforcement and security agencies, and military agencies in the US. It
also exports its arms in global market. The company offers turnkey perimeter security solutions for protection and control
of access to key military, governmental and corporate facilities. The company has two manufacturing facilities. Smith &
Wesson is headquartered in Springfield, Massachusetts, the US.
1.2 Business Description
Smith & Wesson is a manufacturer of firearms. The company manufactures primary firearm products, handcuffs, and
other accessories for safety, security, protection and sport applications. It also provides turnkey perimeter security
solutions for protection and control access to key military, governmental and corporate facilities. The company operates
its business operations through single segments: Firearms.
Under the Firearm segment, the company offers products and services under two categories: Firearms and Non-firearms.
Under the Firearms category the company manufactures revolvers, pistols, hunting firearms and sporting rifles. It also
distributes Walther firearms such as Walther PPK and PPK/S pistols in the US. Under the Non-firearms category, the
segment provides parts and accessories to support its firearm products. It also operates Smith & Wesson Academy -
private law enforcement training facility and provides training needs and instruction designed law enforcement personnel.
In addition, it offers specialty services in metal processing and finishing such as forging, heat treating, finishing, and
plating. During FY2012, the Firearms category accounted for 95.60% of the total revenue of the company, whereas the
Non-firearms category contributed 4.40% towards the company’s total revenue.
The company has two manufacturing facilities: one located at Houlton, Maine and the other is in Springfield,
Massachusetts. The Houlton facility manufactures handguns, handcuffs, and restraints, whereas the Springfield facility
produces handguns, modern sporting rifles, and hunting rifles.
It sells its firearm products to a wide range of customers, including competitive shooters, individuals desiring home and
personal protection, gun enthusiasts and collectors, hunters, sportsmen, law enforcement and security agencies and
officers, and military agencies in the US and other international markets. It sells firearm products under the Smith &
Wesson brand.
The company’s research and development arm focuses on the development of new firearms and enhances its existing
products. During FY2012, the company spent US$4 million towards its research and development operations.
In July 2012, the company sold its security solutions business. In April 2012, the company launched M&P Shield, a
polymer pistol.
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Smith & Wesson Holding Corporation
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1.3 Major Products and Services
Smith & Wesson Holdings Corporation manufactures firearms for defense and commercial applications. The key products
offered by the company include the following:
Table 1: Major Products and Services
Products:
Firearm Products:
Revolvers
Pistols
Hunting rifles
Tactical rifles
Black powder firearms
Handcuffs
Accessories
Security Solutions:
Intrusion detection systems
Vehicle inspection systems
Canopies and guard booths
Signs and signals
Fencing and gates
Bollards and wedge barriers
Reduced-risk barriers
Mobile barriers
Brands:
Military & Police
Airlite
The Sigma S