A Gun Maker With A Dead Aim
March 30, 2009
Arthur W. Savage was a restless overachiever.
He had already made his mark as an explorer, cattle baron and coffee grower before he invented the Model 99 lever-action rifle in 1893 that set new standards for innovation in the U.S. gun industry.
The founder of Savage Arms Co., a maker of rifles and shotguns based in Westfield, Mass., is also credited with designing the first radial tires.
Savage eventually left the gun firm he founded in 1894 to seed other businesses. But he infused the firm that still bears his name with a penchant for innovation that helped it survive the Great Depression and prosper through the present day.
“Savage was a mechanical genius,” Ron Coburn, today’s chief executive at Savage, told IBD. “Every time he developed a new product, whether it was a washing machine or a firearm or a lawn mower, he knew nothing about them. He just looked at the mechanics of the ones on the market and said: That’s not the way to do it — I can make a better one.”
Sturm, Ruger & Company, Inc. Makes Proxy Materials for 2009 Annual Stockholders Meeting Available Via Web
March 26, 2009
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Sturm, Ruger is mailing to its stockholders of record as of March 10, 2009 a notice regarding the Internet availability of the proxy materials instead of a paper copy of its proxy statement and 2008 Annual Report on Form 10-K. This notice contains instructions regarding how to access the Company’s proxy materials through the Internet and how to vote electronically through the Internet or in person at the Annual Meeting. Sturm, Ruger believes that this process will reduce printing, postage and environmental costs for distributing paper copies of its proxy materials.
Sturm, Ruger’s proxy statement and 2008 Annual Report on Form 10-K have been filed with the SEC and may also be viewed at the Company’s website at www.ruger.com. Stockholders who wish to obtain paper copies of the Company’s proxy materials at no charge may do so by following the instructions provided in the notice being mailed to stockholders, or by writing to Leslie M. Gasper, Corporate Secretary, Sturm, Ruger & Company, Inc., Lacey Place, Southport, CT 06890.
Sturm, Ruger’s 2009 Annual Meeting of Stockholders will be held on Wednesday, April 29, 2009 at 10:30 a.m. Eastern Time at the Trumbull Marriott, 180 Hawley Lane, Trumbull, CT 06611.
Sturm, Ruger was founded in 1949 and is one of the nation’s leading manufacturers of high-quality firearms for the commercial sporting market. Sturm, Ruger is headquartered in Southport, CT, with manufacturing facilities located in Newport, NH and Prescott, AZ.
Sturm, Ruger & Company (203) 259-7843
Sportsman’s Warehouse Ends Speculation By Filing For Bankruptcy Protection
March 24, 2009
On Saturday, Sportsman’s Warehouse filed for Chapter 11 bankruptcy protection. The filing ends speculation that the Midvale, Utah based outdoor chain was struggling for survival despite announcing the closure twenty-three stores, layoff of nearly 2,000 employees and the exchange of fifteen other stores to Canada’s United Farmers of Alberta cooperative as repayment of a late-2008 cash infusion.
On Saturday, Sportsman’s Warehouse filed for Chapter 11 bankruptcy protection. The filing ends speculation that the Midvale, Utah based outdoor chain was struggling for survival despite announcing the closure twenty-three stores, layoff of nearly 2,000 employees and the exchange of fifteen other stores to Canada’s United Farmers of Alberta cooperative as repayment of a late-2008 cash infusion.
That infusion was originally to have been the first phase of an acquisition of eighty percent of the chain by UFA. After due diligence, however, UFA said it was no longer pursuing the acquisition, instead taking fifteen stores along the Canadian border as repayment for the capital infusion in late 2008.
In the Saturday bankruptcy filing, the company listed assets of $436.4 million with liabilities of $452.1 million. Chief Financial Officer Rourk Kemp said in the court filings the company “another retailer victim of the worldwide global recession.” Industry observers, however, say the company was victim of an overly aggressive and fatally-flawed business model.
A Chapter 11 filing is not a liquidation proceeding. It gives a company legal breathing room while it attempts to reorganize itself going forward. During that process, the company will keep its twenty-nine remaining stores open, continue to pay employees’ wages and benefits and honor customer returns and exchanges and gift-card programs.
The filing says the company has secured $85 million in financing from GE Capital Corporation that will be available to it while it is under the Chapter 11 protections.
In the meantime, there are thirty unsecured creditors owed more than $34.2 million dollars who are watching the matter very closely.
Homeland Security Spills the Beans
March 23, 2009
| GunNewsDaily “Get the News to Protect Your Freedom” |
In a recent article I pointed out the scam the feds and Mexican government are playing on Americans regarding weapons trafficking into Mexico from the U.S. I pointed out that most of the weapons coming into Mexico used by drug cartels are illegal to purchase in the U.S. at your local gun store. Most are fully automatic military weapons, unavailable to the average gun purchaser, and most definitely not on display at your local gun store.
Yet, our government, aided and abetted by the media, continue to espouse that it is U.S. gun dealers in Arizona, California and Texas that are supplying these weapons to cartels, which fuel the violence. Considering the types of weapons seized, as reported by Mexican authorities, including hand grenades (illegal in the U.S.) landmines (illegal in the U.S.), rocket propelled grenades (illegal in the U.S.), and rocket launchers (illegal in the U.S.), along with fully automatic military rifles (illegal in the U.S.), it certainly leads one to believe that the stories being promulgated by the media and our government look less than honest.
Yet, the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) continues to report that “ATF officials estimate that 90 percent of the weapons recovered in Mexico came from dealers north of the border”. But, they do not in any way say that the 90% of weapons are directly related to cartels. And, why is that? Because they are hoping the general public is dumb enough to connect the dots and assume that’s what is happening.
The fact are; the firearms the BATFE is referring to are used by petty thieves in Mexico, kidnappers, and weapons confiscated from citizens by local law enforcement officials, whose only crime was seeking self-defense for themselves and their families. That is a completely different issue. Firearms do move to Mexico, but the vast majority has nothing to do with drug cartels. It has everything to do with a demand for firearms by otherwise law-abiding Mexican citizens, particularly the middle and upper-class.
NSSF Bulletpoints:
March 16, 2009
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INDUSTRY TURNS OUT IN FORCE TO OPPOSE MICROSTAMPING BILL . . . America’s leading firearms manufacturers, many based in Connecticut, attended a press conference at the State Capitol in Hartford to announce a unified industry stand against legislation that would force them to adopt a patented, unreliable sole-sourced technology to microstamp firearms. The companies attending the press conference included Colt’s Manufacturing Company, Marlin Firearms, O.F. Mossberg and Sons, Sturm, Ruger and Co., and Smith & Wesson. Joining the press conference was NSSF and the Connecticut Association of Firearms Retailers.
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REMINGTON CEO TAPPED TO LEAD CABELA’S . . . Cabela’s Inc. (NYSE:CAB) announced today that Remington Arms Co. CEO Thomas (Tommy) Millner has been picked to succeed Dennis Highby as the outdoor retailer’s new CEO and president. Millner spent 15 years with Remington, serving the past 10 years as its CEO. He is a former member of NSSF’s Board of Governors. “Tommy Millner’s many years in and understanding of the industry, respect for Cabela’s values, passion for the outdoors and knowledge of the competitive landscape will be very important in his new position at Cabela’s,” said Highby, who will assume the position of vice chairman of the board. Highby joined Cabela’s 33 years ago as its first salaried employee and has served as CEO and president since July 2003. Read more: Cabela’s Press Release
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TORBECK TO SUCCEED MILLNER AS REMINGTON / FGI CEO . . . Remington Arms Co. and its parent company, Freedom Group Inc., have named Theodore (Ted) Torbeck as their CEO. Torbeck joined Remington as its chief operating officer in February 2008. Torbeck will replace Tommy Millner, who is joining Cabela’s Inc. as its new CEO and president. Prior to his employment with Remington, Torbeck had been an employee of General Electric Co. since 1978, most recently serving as vice president operations of GE Industrial from 2006 to 2008. “I am excited about the opportunity of leading this amazing group of companies and its dedicated employees. The industry faces many challenges and our enterprise is poised to address them and continue to meet and exceed our customers’ expectations,” said Torbeck. Read more: Remington Press Release
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RAISING AWARENESS IN L.A. . . . In an effort to help educate the Los Angeles-area public about gun ownership, shooting and firearm safety, ranges around L.A. are teaming up with NSSF to hold a number of First Shots seminars starting March 28. The seminars are part of a broader effort to raise awareness of the shooting sports and to promote firearms safety and responsibility. A full-page ad, which ran this weekend in the Los Angeles Times, focused on what is being done by the industry to promote firearm safety. The ad highlights NSSF’s Project ChildSafe, First Shots and Don’t Lie for the Other Guy programs and their Web sites. The effort follows a successful similar campaign in the Chicago area. Learn more at www.firstshots.org/LA.
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SMITH & WESSON CLIMBS TO PROFIT IN THIRD QUARTER . . . Smith & Wesson Holding Corp. (NASDAQ:SWHC) reported Thursday that it posted a third-quarter profit of $2.4 million, or 5 cents a share, compared to a loss of a loss of $1.8 million, or 4 cents a share, a year ago. Pistol sales jumped 45.7 percent during the quarter. Net product sales rose 25.9 percent. Said CEO Michael Golden, “While our hunting business continues to suffer in the current economic environment, the market for hunting rifles in a healthy economy is a sizeable one. In addition, this portion of our business produces barrels for our tactical rifles, products that are clearly in very high demand right now.” The company’s third-quarter results easily beat Wall Street estimates.
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YSSA BEGINS INTERVIEW SERIES WITH INDUSTRY LEADERS . . . The Youth Shooting Sports Alliance has initiated a new “Q&A with Industry Icons” interview series featuring Ron Coburn, chairman and CEO of Savage Sports Corporation. The series will be published on the YSSA Web site, www.youthshootingsa.com, and will feature leaders in the shooting sports industry who will discuss what their companies and organizations are doing to benefit the next generation of shooters and hunters.
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FMG ADDS ANOTHER DIGITAL EDITION . . . American Handgunner becomes the fourth FMG Publication to make the move into cyberspace, joining GUNS Magazine, Shooting Industry magazine and American COP in the digital arena. The online edition of American Handgunner debuts with the May/June issue and uses the latest dynamic flash, flip-page technology to create a real-time, page-turning, online magazine viewing experience. Visit www.americanhandgunner.com to view the May/June digital edition of American Handgunner, and for more information on FMG’s family of publications visit www.fmgpublications.com.
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COLLEGE CHAMPIONSHIPS EYE RECORD NUMBERS . . . The 41st ACUI Intercollegiate Clay Target Championships will be held Wednesday to Sunday at the National Shooting Complex in San Antonio, Texas. According to preliminary numbers, the event is expected to be the largest ever, thanks to a continued influx of new shooters and new teams. NSSF is a co-sponsor of the event, along with NRA, Winchester and USA Shooting. NSSF is also sponsoring a series of airings of the event on ESPNU and ESPN2.
Look back on last year’s championships. -
IHEA BENEFIT SHOOT TO BE HELD BEFORE NSSF SUMMIT IN FLORIDA . . . The International Hunter Education Association Foundation Annual Benefit Shoot is the most important event of the year to raise the money that keeps today’s 750,000-per-year hunter-education students and more than 70,000 volunteer instructors functioning and effective. The IHEA 2009 Annual Benefit Shoot will held May 30-31, immediately prior to NSSF’s Shooting Sports Summit in Florida. The shoot will be held at Markham Park Range in Sunrise, Fla., just a few minutes away from summit headquarters at the Hyatt Regency Bonaventure. Summit attendees are invited to sign up 3-person teams for the shoot. Those attending the summit as individuals are encouraged to join up with other individual attendees to form teams. Learn more about the shoot.
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BAN ON TRADITIONAL AMMO HURTS HUNTING, WILDLIFE . . . Hunting has declined in areas where California last year banned the use of traditional ammunition with lead components, costing the Department of Fish and Game in excess of $200,000 in lost tag fees, reports outdoor writer Jim Matthews in the San Bernadino Sun. Sales of deer tags for the seven zones affected by the ban declined after three years of gains there, and tags for wild pigs were down as well. While hunting increased outside the geographic scope of the ban, the decline appeared to confirm a Responsive Management study that showed approximately 25 percent of hunters would either quit big-game hunting or hunt less in California if a ban was adopted. Among the reasons cited for the decline was that non-lead ammo costs more than traditional ammunition. “NSSF fought the ban on traditional ammunition because there was no conclusive evidence that California condors were being harmed by it and because hunters offered to voluntarily take steps to prevent ingestion of spent bullet fragments by burying game entrails,” said Lawrence G. Keane, NSSF senior vice president and general counsel.
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NSSF AND OTHERS CRITICIZE NPS AMMO BAN . . . The National Park Service last week announced a ban on using traditional ammunition with lead components, and lead fishing tackle, on NPS-managed lands seemingly without input from conservation groups, hunters, anglers or ammunition manufacturers. “The decision is arbitrary, over-reactive and not based on science,” said Steve Sanetti, NSSF’s president. “Studies show that traditional ammunition does not pose a health risk to humans, or wildlife populations as a whole.” The U.S. Sportsmen’s Alliance called on sportsmen to contact their U.S. representatives and senators to voice their opposition to the ban, and the American Sportfishing Association said the park service’s decision ran counter to President Obama’s executive memo advocating transparency in government. In a West Virginia news story later in the week, the park service’s public affairs director was quoted as saying the ban applied only to park personnel, although Acting Parks Service Director Dan Wenk is quoted in the NPS press release as saying, “Our goal is to eliminate the use of lead ammunition and lead fishing tackle in parks by the end of 2010.” Read more: NSSF Press Release.
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DEC: SAFEST YEAR ‘IN HISTORY OF HUNTING IN NEW YORK’ . . . Syracuse.com reports that the New York Department of Environmental Conservation has indicated that 2008 was the safest year ever for hunters in the state.
Smith & Wesson Holding Corporation Announces Third Quarter Financial Results
March 12, 2009
Smith & Wesson Holding Corporation Announces Third Quarter Financial Results
Firearms Sales of $78.5 Million (+27.5%)
Handgun Sales $61.9 Million (+45%)
Net Income $2.4 Million – EPS of $0.05
SPRINGFIELD, Mass., March 12 /PRNewswire-FirstCall/ — Smith & Wesson Holding Corporation (Nasdaq: SWHC), parent company of Smith & Wesson Corp., the legendary 157-year old company in the global business of safety, security, protection and sport, today announced financial results for its third fiscal quarter ended January 31, 2009.
Net product sales for the three months ended January 31, 2009 were $83.2 million, a $17.1 million, or 25.9%, increase over net product sales for the three months ended January 31, 2008. Net income for the third fiscal quarter was $2.4 million, or $0.05 per fully diluted share, compared with a net loss of $1.8 million, or $0.04 per share, for the comparable quarter last year. Adjusted EBITDAS, a non-GAAP financial measure, was $9.2 million for the third quarter, compared with $3.7 million for the third quarter of fiscal 2008.
Total firearms sales for the third quarter were $78.5 million, an increase of $16.9 million, or 27.5%, over the third quarter of last year. Pistol sales increased 45.7% to $24.9 million, driven by continued consumer demand, law enforcement adoption of the M&P polymer pistol line, and strong consumer sales of the Sigma pistol line. Sales of M&P pistols increased 77.1% for the third quarter. M&P tactical rifle sales increased by 111% to $8.8 million for the third quarter as demand for this product remained strong in both the consumer and law enforcement channels. Total revolver sales were $22.3 million, an increase of $7.0 million, or 45.4%, versus the comparable quarter one year ago. Sales of non-firearm accessories, including handcuffs, totaled $4.7 million, a 4.0% increase over non-firearm accessory sales of $4.5 million for the third quarter last year. Hunting firearm sales of $6.7 million represented a decline of $5.8 million, or 46.4%, from the comparable quarter in the last fiscal year. Hunting products continued to be negatively impacted by a number of factors, including their position in the consumer discretionary marketplace and a distribution channel that is buying cautiously.
Michael F. Golden, President and Chief Executive Officer, said, “I am pleased to report these very positive results for our third fiscal quarter. Our handgun and tactical rifle products have consistently delivered favorable results throughout the past several quarters, and during the third quarter, we experienced significant increases in the consumer demand for these products. Despite continuing weakness in the overall economy, we focused on our strategy to grow our business in the consumer and the professional channels, and we launched some important new products. At the same time, we addressed recent, very strong demand, for our pistols, revolvers, and tactical rifles. In fact, sales of handguns and tactical rifles into our consumer channel for the third quarter grew 62% over the prior year. We delivered solid profits, and we made significant progress toward bolstering our balance sheet by reducing our inventories and effectively managing our accounts receivable, which resulted in a strengthening of our cash position.”
Where’s the Ammo?
March 12, 2009
I thought I would pass this little comment about ammo from Rich Grassi. He writes for the Tactical Wire.
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Editor’s Notebook: Where’s the Ammo?
By Rich Grassi
On Tuesday, we received a writer email asking about what he called “the current ammo shortage.” He specifically asked about rumors that factories had cut back on production, mentioning Remington by name. Our reader went on to state that “competition for raw material should be down given the world economic slowdown, yet prices continue to rise and availability is shrinking.”
We respond to our readers, even if some of the ground had been covered before – we get new subscribers regularly and he likely hadn’t seen our previous entry on the “why is ammo scarce” issue.
Before this email arrived, I was having breakfast with firearms expert, trainer, armorer and philosopher Mike Rafferty. He is one who always has an eye out for ammo, particularly now.
“There’s buzz on the internet forums that won’t go away,” he said. “The rumor is that ammo is scarce because of increased law enforcement training.”
I snorted. Training in law enforcement? Who are they kidding?
“Well, NYPD is giving fifty rounds apiece of carbine training to an increasing number of cops – newly graduated recruits, I hear – who aren’t in the ESU.” ESU is the Emergency Services Unit, the precursor to SWAT, an outfit that has broader responsibilities than normal SWAT outfits.
Fifty rounds of carbine shooting isn’t “training.” That said, it’s more trigger time than they would have had. If it hadn’t been for Mumbai, they wouldn’t have trained up more cops on the M4-style carbine. Still, when you have thousands of cops, 50 rounds a head starts to add up.
I asked Mike what he thought. “People are hoarding. When they find ammo anywhere, they snap it up before someone else gets it.”
The increase in demand causes increases in price.
I sent a note around to the ammunition industry asking the question our reader asked.
Here are a few comments from Remington – specifically from John Chisnall, Director – Brand Management, Ammunition.
“Strong 2008 4th quarter hunting seasons and “putting food on the table” in these difficult economic times have driven some of the strong demand being experienced in hunting ammunition categories.
“Regarding supply, our factory is working overtime and doing the best they can to address the demand.
“With regards to pricing, costs have stabilized as commodity prices and energy prices have stabilized, and pricing has decreased in some categories despite strong shooter demand.”
That’s the official, on-the-record statement. We appreciate Mr. Chisnall taking time to address the issue.
Another ammunition industry insider stated that a company he’s involved with is making more ammo now than they ever have. That company is experiencing some delays in getting certain supplies but runs hard to catch up.
Prices have gone up on “black rifles” and handguns meant for defensive work, but no one seems to hit the internet forums with that . . .
The ammo shortage situation? It’s partially fed by reporting on shortages and self fulfilling prophecy, no doubt. If shooters hear that ammo is short on supply, they’ll snag more than they need, hedging against future shortages.
Firearm Sales Continue Upward in February
March 9, 2009
To: ALL MEDIA
For immediate release
March 3, 2009
For more information contact:
Ted Novin
tnovin@nssf.org
Office: 203-426-1320
Cell: 202-253-1860
Data from the FBI’s National Instant Criminal Background Check System (NICS) show background checks on the sale of firearms jumped 23.3 percent in February when compared to February 2008. The increase follows a 29 percent rise in January, a 24 percent rise in December and a 42 percent jump in November, when a record 1,529,635 background checks were performed.
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The continuing increase in firearm sales coincides with an ATF announcement yesterday that firearm retailers may continue to photocopy the Form 4473 – the federal document required for purchase of a firearm from a licensed retailer — in its entirety until they receive requested backorders from the Distribution Center.
FBI background checks are required under federal law for all individuals purchasing firearms from federally licensed retailers. These checks serve as a strong indicator of actual sales.
“Since November, sales of firearms — in particular handguns and semi-automatic hunting and target rifles — are fast outpacing inventory,” said Steve Sanetti, president of the National Shooting Sports Foundation (NSSF), the trade association for the firearms and ammunition industry. “Americans are clearly concerned about their ability to be able to purchase these products in an uncertain future.”
NICS reported 1,259,078 checks in February, up from 1,021,130 in the same month a year ago.
NSSF, founded in 1961, is the trade association for the firearms, ammunition and recreational shooting sports industry. It promotes the safe ownership and responsible use of products its members make and sell. For more information, visit www.nssf.org.
Supreme Court Closes The Book on New York City’s Lawsuit Against Gun Makers
March 9, 2009
To: ALL MEDIA
For immediate release March 9, 2009
For more information contact:
Bill Brassard
203-426-1320
Supreme Court Closes The Book on
New York City’s Lawsuit Against Gun Makers
Court Also Rejects DC/Lawson Case
NEWTOWN, Conn. — Putting an end to nine years of litigation, the U.S. Supreme Court refused to hear New York City’s request to continue a lawsuit that sought to hold firearms manufacturers responsible for the criminal misuse of firearms.
“We are very pleased by today’s ruling by the U.S. Supreme Court to not review lower appellate court rulings that dismissed cases based on the Protection of Lawful Commerce in Arms Act,” said Steve Sanetti, president of the National Shooting Sports Foundation, trade association for the firearms industry. “These baseless lawsuits against responsible, law-abiding companies are the type that Congress intended to prevent by passing the Protection of Lawful Commerce in Arms Act.”
The city’s lawsuit was originally filed in 2000 by Mayor Rudolph Giuliani and was continued by Mayor Michael Bloomberg. After the Protection of Lawful Commerce in Arms Act was passed by Congress in 2005, a federal judge threw out the New York lawsuit. Then in April of 2008, the 2nd U.S. Circuit Court of Appeals upheld that decision, saying the new law was constitutional.
New York’s final recourse was to appeal to the U.S. Supreme Court, but today the court refused the case.
Among the companies sued were Beretta USA Corp., Smith & Wesson Holding Corp., Colt’s Manufacturing Co. LLC, Sturm, Ruger & Co. and Glock GmbH.
Also today the Supreme Court denied review of a similar case brought by the District of Columbia and individual residents of the district including Bryant Lawson against Beretta and other firearms manufacturers. These plaintiffs also hoped to have their case challenging the constitutionality of the Protection of Lawful Commerce in Arms Act heard by the high-court’s Justices.
“Today common sense and fairness prevailed,” said Lawrence G. Keane, NSSF senior vice president and general counsel.
Sturm Ruger is the sole 52-week high on Friday’s session.
March 7, 2009
http://finance.yahoo.com/news/Sturm-Ruger-is-the-sole-smallcapinvestor-14498463.html
- Friday February 27, 2009, 4:06 pm EST
Sturm Ruger and Co Inc. (NYSE:RGR – News)is the sole 52-week high on Friday’s session.
Here are the new 52-week highs among small caps:
| Price at 9:08 ET | Change | % Change | Volume | Year High | Year Low | ||
| RGR | STURM RUGER & CO INC | 9.42 | +0.32 | +3.5% | 414.3k | 9.24 | 4.36 |
Related Quotes
| Symbol | Price | Change |
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| RGR | 10.32 | +0.27 |
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