Smith & Wesson Holding Corporation (NASDAQ:SWHC) reported a solid financial performance for the fourth quarter and full year that ended April 30, 2013. According to the company’s earnings release, the gun manufacturer’s net sales rose by 38 percent to $178.7 million in the fourth quarter. Smith & Wesson Holding Corporation (NASDAQ:SWHC) stated that it failed to meet the ongoing demand in most of its product lines despite the increase of its production capacity. As a result, its order backlog grew.

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Income from continuing operations for the period was $28.6 million or $0.44 per diluted share. During the same period in 2012, it recorded $17.8 million or $0.27 per diluted share. Its continuing operating income for the fourth quarter included the impact of a $3 million charge or $0.03 per diluted shares related to the anticipated recall of the Thompson/Center product.

Smith & Wesson Points to Low Operational and Marketing Expenses

During this period Smith & Wesson Holding Corporation (NASDAQ:SWHC) posted $68.5 million gross profit compared with its $46.9 million gross profit in the fourth quarter last year. The company said that the increase in sales volume, leveraging of fixed costs, and favorable product mix boosted its gross profit.

See Gun Shops Face Nationwide Ammunition Supply Shortage

The gun manufacturer said its operating income for the quarter was $46.9 million versus the $25.7 million operating income recorded in the same period a year earlier. Its operating expenses were $21.6 million, down from $21.2 million in the previous year. Smith and Wesson Holding Corporation (NASDAQ:SWHC) explained that its operating expenses were lower because of higher sales and controlled spending in sales and marketing.

According to the gun manufacturer, its non-GAAP adjusted EBITDA from continuing operations for the period was $52.7 million, up from $31.2 million in the same period a year ago. Smith & Wesson ended the quarter with a free cash flow of $38.3 million.

For the full year 2013, Smith and Wesson Holding Corporation (NASDAQ:SWHC) generated $587.5 million net sales, up from $412 million in fiscal 2012. Income from continuing operations was $81.4 million or $1.22 per diluted share compared with $26.4 million or $0.40 per diluted share last year.

The company repurchased 2.1 million shares of its common stock worth $20 million during its fiscal 2013, and it has a total of $100.5 million cash and cash equivalents as of April 30.

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CEO Attributes Sales To Solid Marketing

James Debney, president and CEO of the Smith & Wesson Holding Corporation (NASDAQ:SWHC), said, “Our successful performance was driven by solid marketing, innovative new products, disciplined manufacturing execution, and strict financial management.  Significant increases in our manufacturing capacity, combined with continued robust consumer demand for firearms, resulted in higher sales of our most popular M&P products.”

Smith and Wesson Holding Corporation (NASDAQ:SWHC) expects to achieve $162 million to $167 million net sales and GAAP earnings from continuing operations of around $0.34 to $0.37 per share in the first quarter of its fiscal 2014.

However, the company gave no credit to president Barack Obama.