December 9th, 2017

Remington May Face Bankruptcy Reports Fox News

Remington Fox News Bankruptcy credit rating sales declines

There are tough times ahead for Remington. Fox News reports that: “Privately-held Remington Outdoor is now at risk of declaring bankruptcy after a collapse in sales and profits. Saddled with debt, the historic gun manufacturer is short on avenues for escape.” (LINK). Fox News adds:

“The rifle and shotgun manufacturer’s third-quarter sales plunged 41% as demand for firearms dried up. That led Remington to report adjusted earnings before interest, taxes, depreciation, and amortization that were 78% lower year over year. Over the first nine months of 2017, the company has produced a $60.5 million net loss, compared to a $19.1 million gain in the prior-year period.

And with its credit rating in the trash bin, the future is bleak for ‘America’s oldest gunmaker’. Today, debt on the company’s books has ballooned to almost $1 billion[.]”

Read Full Remington Report on FoxBusiness.com »

Financial analysts report that Remington’s earnings decline will further harm the company’s already poor corporate credit rating. That means Remington must pay even higher interest rates to borrow money, further bleeding cash and decreasing profitability. This, in turn, accelerates the momentum towards filing bankruptcy. Fox explains: “With the firearms and ammunition manufacturer burning through cash as a result of falling sales, S&P expects it will undertake a restructuring within the next year.”

Other large American gun industry companies have seen their stock value drop dramatically this year. Vista Outdoor (Savage, RCBS, CCI etc.) is down 62% since December 9, 2016, while American Outdoor Brands (Smith & Wesson) has dropped 36%.

Remington Has a Storied History
Founded in 1816, Remington is the oldest continuously-operating gun manufacturer in the United States, and remains one of the USA’s oldest commercial enterprises. Even with its present difficulties, Remington still sells more sporting rifles and shotguns than any other American company. Remington has developed more cartridges than any other U.S. company. And it is the only American company that sells firearms AND ammunition under its own name.

Remington Fox News Bankruptcy credit rating sales declines

The Remington enterprise was founded in 1816 by Eliphalet Remington in Ilion, New York, as E. Remington and Sons. In 2016 Remington celebrated 200 years of history. American Rifleman TV explored the history of Remington Arms Company in a TV special which focuses on many of the company’s most noted firearms. Here is a preview:

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July 13th, 2017

Cabela’s Shareholders Approve Buyout by Bass Pro Shops

Bass Pro Shops Acquires Buys Cabela's Retail Chain Billion Merger

It’s official, Cabela’s is being acquired by Bass Pro Shops. The Shooting Wire reports:

Cabela’s Shareholders Approve Bass Pro Shops Merger
“It only took about 35 people around 20 minutes yesterday to approve a $4.2 billion merger that’s been lingering for months. Backed by what Cabela’s CEO Tommy Milner calls ‘overwhelming support’, the shareholders of Cabela’s approved [the] proposed merger with Bass Pro Shops. Under the current terms, shareholders will receive $61.50/per share for the stock which has been trading in the $58.90-$59.94 range. After the merger, the companies will be based in Springfield, Missouri. No word on how many of the 1,000 workers in Cabela’s Sydney, Nebraska, headquarters will be retained.”

Bass Pro Shops will acquire popular outdoor retail chain Cabela’s (NYSE:CAB) in a $4.2 billion deal expected to close in Q3 of 2017. According to The Street: “Cabela’s agreed in April to be bought by Bass Pro Shops for $61.50 a share, down from the original purchase price of $65.50 a share, valuing the acquisition at $4.2 billion.” After the merger, Bass Pro will continue to recognize Cabela’s CLUB points, and the branded credit cards will be serviced by Capital One.

History of Two Major Outdoor Retailers

CABELA’S
Founded in 1961 by Dick, Mary and Jim Cabela, Cabela’s is a highly respected marketer of hunting, fishing, camping, shooting sports and related outdoor merchandise. Today, Cabela’s has over 19,000 “outfitters” operating 85 specialty retail stores, primarily in the western U.S. and Canada. Cabela’s stores, catalog business and e-commerce operations will blend seamlessly with Bass Pro Shops and White River Marine Group. Over the past 55 years Cabela’s has built a passionate and loyal base of millions of enthusiasts who shop both at its retail stores and online.

BASS PRO SHOPS
Bass Pro Shops, founded in 1972 by avid young angler Johnny Morris, is a leading national retailer of outdoor gear and apparel, with 99 stores and Tracker Marine Centers located primarily in the eastern part of the U.S. and Canada. Morris started the business with eight square feet of space in the back of his father’s liquor store in Springfield, Mo., the company’s sole location for the first 13 years of business. Johnny’s passion for the outdoors and his feel for the products and shopping experiences desired by outdoor enthusiasts helped transform the industry. Bass Pro Shops, which employs approximately 20,000 team members, has been named by Forbes as one of “America’s Best Employers.”

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June 15th, 2015

Colt Files for Chapter 11 Bankruptcy

Colt Defense LLC Manufacturing Company Bankrupt Bankruptcy Ch 11 Chapter File Wall Street Journal Bond Liquidation

On Sunday, June 14, 2015, firearms manufacturer Colt Defense LLC and its subsidiaries (“Colt”) filed for Chapter 11 bankruptcy, with the goal of selling the enterprise. Colt had been strained by a heavy $355 million debt burden, and had previously warned that it might resort to bankruptcy if it could not reach an agreement with bond-holders. In a Sunday news release, Keith Maib, Colt’s chief restructuring officer stated: “The plan we are announcing and have filed today will allow Colt to restructure its balance sheet while meeting all of its obligations to customers, vendors, suppliers and employees and providing for maximum continuity in the company’s current and future business operations.” Read full Press Release.

According to Marketwatch, Colt hopes to have new owners by the end of the summer: “Colt is racing to get to the auction block by August 3, with an opening buyout offer from Sciens Capital Management LLC, Colt’s private-equity backer.” There are actually ten separate but related business entities under the Colt umbrella that collectively filed for backruptcy. These are listed in the Bankruptcy Filing Summary, In re Colt Holding Company LLC, Case Number: 15-11296.

(more…)

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March 4th, 2014

Ruger Reports Big Gains in Sales and Earnings for 2013

Ruger American Rimfire RifleAh, the power of hindsight. I guess we all wish we’d snapped up some shares of Sturm, Ruger & Co. (NYSE:RGR) a few years back. While Ruger’s stock price has come down from its high of 85.93 in mid-January 2014, Ruger stock has still risen more than 400% over the past three years (since January 2011).

Why has Ruger stock risen so far, so fast? Just look at the numbers. Ruger is selling all the guns the company can build. The latest sales figures are remarkable. Ruger just announced that 2013 sales were up 40 percent over 2012. Earnings increased 55 percent for 2013 compared to 2012.

Ruger American Rimfire Rifle

The company said new product introductions were a significant component of sales growth, representing 29 percent of firearm sales in 2013. New product introductions during the year included the LC380 pistol, SR45 pistol, Ruger American Rimfire rifle (below), SR-762 rifle, and Red Label II shotgun. Ruger also noted that in the fourth quarter it began to manufacture a limited quantity of rifles at its recently acquired 220,000 square foot facility in Mayodan, North Carolina. Firearm production at the Mayodan facility is expected to increase during 2014.

Ruger American Rimfire Rifle

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