November 2, 2009

Vol. 10 No. 44

This Week:

Industry News

Legal

SHOT Show

News of Note

Industry Generates $122 Million
for Conservation in 2nd Quarter

52 PERCENT RISE IN EXCISE TAXES PAID BY FIREARM, AMMO MANUFACTURERS . . . Firearms and ammunition manufacturers reported federal excise tax obligations to be $122 million in the second calendar quarter of 2009, up 52 percent compared to the same period a year ago, according to data from the Department of the Treasury. The increase follows a 43 percent increase in excise tax obligations reported during the previous quarter. Manufacturers pay the federal excise tax -- a major source of wildlife conservation funding -- on all firearms and ammunition manufactured (11 percent on long guns and ammunition and 10 percent on handguns). Between April 1 and June 30, $33.5 million was due in taxes for pistols and revolvers, $42.3 million for long guns and $46.1 million for ammunition. Compared to the same quarter in 2008, excise tax obligations were up 44.4 percent for handguns, 51.3 percent for long guns and 57.5 percent for ammunition. Using the latest collections as an indication of sales, a projection of $1.14 billion was generated in the second quarter. Though excise taxes are one of the best indicators of industry performance, they only reflect what excise taxes the manufacturers have filed and do not reflect retail mark-up and final retail sales.

  • EXCISE TAX MODERNIZATION BILL REACHES 100 CO-SPONSORS . . . Last week, U.S. Reps. Glenn Nye (D-Va.), Lincoln Davis (D-Tenn.) and Tim Holden (D-Pa.) agreed to co-sponsor H.R. 510, legislation to rectify a longstanding inequity in the frequency with which firearms and ammunition manufacturers are required to pay the federal excise tax on the sale of their products. The total number of sponsors/co-sponsors and those who have committed to co-sponsor H.R. 510 now stands at 100. The total number of sponsors/co-sponsors and those who have committed to co-sponsor S. 632, the Senate excise tax equity bill, remains at 18. It's vitally important that all members of the firearms and ammunition industry urge their senators and representatives to support this pro-conservation, pro-business bipartisan legislation. All the background information and sample letters you need to call and write your senators and representatives is available on the NSSF Legislative Action Center Web page. Please, call your senators and representatives today.

Industry News

Chris Dolnack

  • NSSF UNVEILS NEW BROADCAST STUDIO AND REALIGNS DUTIES . . . The National Shooting Sports Foundation has installed a fully operational broadcast studio to support its messaging and programs. The new studio will be used for educational and informational videos, including podcasts, Webinars and other new media communications. "We pride ourselves in being able to identify the most effective communication tools to support our membership and educate hunters and shooters," said Chris Dolnack, NSSF senior vice president. "We have assembled a veteran team to take advantage of these new tools and will continue to utilize technology to clearly communicate our programs, services and values." To maximize the use of the facility, Dave Miles has been named director of electronic media and will be responsible for all NSSF video and video support. Dolnack will now assume all selling responsibilities, including sponsorships and advertising for NSSF's publications. Mark Thomas, managing director of marketing communications, will now assume all NSSF branding, promotions, print and electronic advertising development and advertising purchases. To help enhance NSSF's new media capabilities, Kris Crockett has joined NSSF's communications team as a new media specialist. Crockett will assist NSSF New Media Manager Bill Dunn with Web content updates and enhancements, online presentations and Webinars, e-newsletters and expanding NSSF's presence on sites such as Facebook, Twitter and YouTube. Crockett comes to NSSF after operating his own consulting business.

  • RUGER SOARS IN THIRD QUARTER . . . Sturm, Ruger & Co. (NYSE:RGR) reported that sales increased 70 percent during the third quarter to $71.2 million, up from $41.8 million a year ago. Third-quarter earnings rose to $7.1 million, or 37 cents per share, from $372,000, or 2 cents per share, a year ago. The company said estimated sales of products from distributors to retailers jumped 50 percent during the quarter to 214,500 units. Firearms unit production was up 53 percent to 242,500 units.

  • RECORD WINCHESTER EARNINGS FOR THIRD STRAIGHT QUARTER . . . Olin Corp. (NYSE:OLN) reported that sales in its Winchester division were $168.2 million in the third quarter, up 19 percent from $140.8 million in the same period a year ago. "For the third consecutive quarter, Winchester achieved the highest level of earnings in its history, reflecting the combination of seasonally strong sales, the continuation of the stronger than normal demand that began in the fourth quarter of 2008 and lower costs," said Joseph D. Rupp, Olin chairman, president and CEO. "Winchester's earnings more than doubled in the third quarter of 2009 compared to the third quarter of 2008 driven by commercial sales which increased 22 percent year-over-year, and improved costs."

  • CABELA'S SAME-STORE SALES UP, PROFIT JUMPS IN THIRD QUARTER . . . Outdoor retailer Cabela's (NYSE:CAB) reported sales at its retail stores rose 6.1 percent during the third quarter, led by a 3.5 percent increase in comparable store sales (sales at stores open at least a year). Profit for the quarter increased 93 percent to $18.8 million, compared to $9.7 million in the year ago quarter. Earnings per share for the quarter increased 87 percent to 28 cents, compared to 15 cents a year ago.

  • ARMY TO OPEN COMPETITION FOR CARBINE . . . The U.S. Army has requested $9.9 million from Congress to start the solicitation process for a firearms competition as part of their consideration of acquiring a new carbine, Army Times reports. Currently, the Army's primary firearm for soldiers is the M4. The first round of testing will likely begin late next summer and last though summer 2011 and draw dozens of small arms manufacturers.

  • NICS BUSY SEASON CLARIFICATION . . . The FBI's National Instant Background Check System (NICS) hours of operation for federal firearms licensees (FFLs) will remain the same as their current hours of operation during this year's NICS busy season. NICS Call Centers will be available daily from 8 a.m. to 1 a.m. Eastern. The only deviation to this schedule will be Nov. 27, the Friday following Thanksgiving, when the hours of operation will be 6 a.m. to 1 a.m. Eastern. These extended operational hours will be available only to those FFLs who use the FBI Call Centers. The NICS Section will cease operation at midnight on Christmas Eve and remain closed on Christmas Day. The NICS will resume normal operations on Dec. 26 at 8 a.m. Eastern. The extended busy season hours for NICS previously published in Bullet Points referred to the extended hours of operation for the NICS computer system, which is available for FBI employees and state agencies operating as points of contact (POCs) for the NICS in order to expedite the processing of delayed transactions to provide more expeditious responses and enhanced service to customers.

Legal

  • JUDGE REJECTS CLAIM THAT PISTOL DIDN'T HAVE ADEQUATE WARNINGS . . . On Aug. 20, a judge ruled that Smith & Wesson wasn't to blame for an incident that caused a shooter to lose a finger (Foltz v. Smith & Wesson Corp.), reports Texas Lawyer magazine. In 2006, Roger Foltz was firing his .460 revolver and placed his finger between the cylinder and the back of the barrel. When he fired, the hot, pressurized gasses escaped in the area where he had placed his finger and partially amputated it. Smith & Wesson successfully argued the safety manual included with the pistol specifically and sufficiently warned users against placing their fingers where Foltz placed his. According to the court, makers and sellers of firearms have no duty to warn of the obvious dangers of owning or selling a handgun.

SHOT Show

  • STELLAR LINEUP FOR SHOT SHOW UNIVERSITY; GET REGISTERED . . . NSSF will be bringing the firearms retailing community a very impressive lineup of speakers for the 2010 SHOT Show University, planned for Monday, Jan. 18. "Our aim with SHOT Show University is to provide the best possible training seminar that will ultimately make all retailers in attendance more viable and profitable," said Randy Clark, NSSF managing director of business development. "With this year's lineup of speakers and topics, you can't miss." Delivering this year's keynote address will be highly sought after speaker George Whalin, who has been helping retailers increase sales and maximize profits since 1987. In his address, Whalin will focus on strategies for a changing retail world. He will also run a session on high-impact marketing. Learn more and get registered | Sponsorship opportunities

  • SHOT SHOW BLOG . . . Recent updates to the SHOT Show Blog include a warning to exhibitors on using contractors and how exhibitors can cash in on storage and drayage costs. Read the SHOT Show Blog online at www.shotshow.org/blog.

News of Note

  • NEWSPAPER APOLOGIZES FOR LETTER ADVOCATING KILLING HUNTERS . . . The Burlington Free Press ran a letter of apology last week after publishing a reader's letter that said, "I suggest that before the next annual [moose] killing season, other residents be awarded legal permits to kill hunters . . . ." In response to the letter being published, the commissioner of the Vermont Fish and Wildlife Department used the opportunity to write an op-ed column explaining the value of hunting and its benefits on the state's moose population. Read the letter, apology and op-ed in NSSF's Aiming for Accuracy Blog.

  • NEW MAGAZINE FOR AR ENTHUSIASTS . . . A new digital magazine, "AR Guns and Hunting," has launched. Content includes tips, history and discussions about equipment related AR rifles. The magazine, published by Grand View Media Group, is an indicator of the increasing popularity among hunters for AR-platform rifles. The launch coincides with NSSF's national campaign to educate sportsmen about the "modern sporting rifle." The new magazine features an article on the NSSF campaign. Read Ralph M. Lermayer's editor's letter | Read the magazine

  • NSSF SUPPORTS TREAD LIGHTLY! . . . As part of its effort to increase hunting participation, NSSF is supporting the Tread Lightly! campaign that works to maintain and enhance access to public lands by encouraging responsible behavior by sportsmen and other recreationists in order to reduce property and natural resource damage, unsafe and irresponsible practices, and visitor conflicts. The campaign helps individuals understand the consequences of irresponsible behaviors, such as access closure. "NSSF has long been an advocate of responsible, safe and ethical behavior by hunters and shooters, and through its creative ad campaigns Tread Lightly! helps further that message," said Melissa Schilling, NSSF's manager of recruitment and retention. Last week, Tread Lightly! launched the first legs of a multi-dimensional education and outreach campaign built around a central slogan, "Respected Access is Open Access."

  • NFL PLAYERS TALK HUNTING . . . ESPNOutdoors.com interviewed Atlanta Falcons players who are also avid hunters. The players share their favorite hunting memories and their hopes for passing on the sport to future generations.

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COPYRIGHT © 2009 by National Shooting Sports Foundation, Inc. Permission is granted for broadcast, publication, retransmission to e-mail lists, Web sites or any other copying or storage, in any medium, online or not, if 1) the text is forwarded in its entirety, including this paragraph, and 2) no fee is charged. "Bullet Points®," "National Shooting Sports Foundation®," "NSSF®," and all other trade names, trademarks, service marks, logos and images of the National Shooting Sports Foundation appearing in this publication are the sole property of the Foundation and may not be used without the Foundation's prior express written permission. All other trade names, trademarks, service marks, logos and images appearing in this publication are trademarks or registered trademarks of their respective owners.

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NSSF's Aiming for Accuracy Blog hunts down and corrects inaccuracies in the media about firearms, the firearm industry and the shooting sports.

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