TC Icon

[doegirl]

http://www.tcarms.com/firearms/icon.php The MOA guarantee is attractive. Wonder when they'll be hitting the stores and what the pricing will be like.

 

[jcchartboy]

Wonder when they'll be hitting the stores and what the pricing will be like.

Now that Thompson/Center no longer exists as the company people knew them as, pretty much anything could happen. The history of firearm manufacturers being operated as holding companies in the US leaves a lot to be desired.

The one thing I can say for sure is that if I was interested in purchasing a T/C product I would be doing so sooner rather than latter. My guess would be that in a few years folks may be referring to T/C products as pre and post SnW much in the same way people refer to Pre and Post-64 Winchester Model 70's.

Fortunately ships of this size don't turn on a dime and most of the products turned out this year should be just fine...

I guess it is the future I'd be more worried about...

JC

 

[JD]

http://www.tcarms.com/firearms/icon.php The MOA guarantee is attractive. Wonder when they'll be hitting the stores and what the pricing will be like.

The Icons price is advertised at $800.

With 4 calibers [.22-250,.243,.30TC,and .308]

I would venture to say that T/C will take the bolt action market by storm. They already have a loyal following with their muzzleloaders and the encore. They are just testing the waters with the Icon, offering just a broad enough caliber selection to cover everything from varmint hunting to big game hunting. T/C is by far the best advertising group in the firearms business. You look through a magazine or watch a hunting show and all you see and hear is T/C. The Icon was not even schedule to come out until 2008. But after what happened to Winchester Greg Ritz decide to introduce it earlier than intended. I believe the Icon will prove to be a successful rifle. I'm looking forward to see if they add calibers or offer other versions of bolt action rifles.

 

[jcchartboy]

I would venture to say that T/C will take the bolt action market by storm. They already have a loyal following with their muzzleloaders and the encore. They are just testing the waters with the Icon, offering just a broad enough caliber selection to cover everything from varmint hunting to big game hunting. T/C is by far the best advertising group in the firearms business. You look through a magazine or watch a hunting show and all you see and hear is T/C. The Icon was not even schedule to come out until 2008. But after what happened to Winchester Greg Ritz decide to introduce it earlier than intended. I believe the Icon will prove to be a successful rifle. I'm looking forward to see if they add calibers or offer other versions of bolt action rifles.

JD,

I just think that being a subdivision of Smith and Wesson, (as opposed to being a privately held company), will have a rather dramatic impact on the companies culture, financing, and operations. It seems like such an enormous change that it will be impossible for the company to operate it's business as usual...

Any thoughts would be appreciated.

JC

SPRINGFIELD, Mass., PRNewswire-FirstCall/ -- Smith & Wesson Holding Corporation (Nasdaq: SWHC), parent company of Smith & Wesson Corp., the legendary 154-year old company in the global business of safety, security, protection and sport, today announced that it acquired Thompson/Center Arms, Inc., a 40-year old, privately held, New Hampshire-based designer, manufacturer and marketer of premium hunting firearms, for $102 million in cash. The transaction is expected to closed January 7th 2007.

Thompson/Center Arms, headquartered in Rochester, New Hampshire, manufactures and distributes innovative firearms recognized by hunting enthusiasts for their precision, performance, craftsmanship, and reliability. Thompson/Center Arms occupies a leadership position within each of its core product categories of black powder firearms (or "muzzleloaders"), black powder accessories, and interchangeable firearm systems, as well as a presence in precision rimfire rifles. The transaction will combine two leading firearms companies with complementary products, to yield a single provider of high- quality pistol, revolver, shotgun and rifle products.

Michael F. Golden, President and CEO of Smith & Wesson Holding Corporation, said, "The acquisition of Thompson/Center Arms is an important step in our diversification strategy. Thompson/Center Arms has consistently delivered both profits and strong gross margins while building its position in the hunting rifle market. This move will expand our presence in the $1.1 billion long gun market by providing immediate entry into the hunting rifle and black powder segments, which represents approximately $600 million in domestic sales. In addition to carving out a leadership role in black powder and single shot hunting rifles, Thompson/Center Arms has developed tremendous expertise in manufacturing long-gun barrels, a competency that will be important to Smith & Wesson as we expand our capabilities even further into the long gun market."

The purchase price for Thompson/Center Arms includes the company's Rochester, New Hampshire facility, which produces all of the company's products and is situated geographically between Smith & Wesson's manufacturing operations in Springfield, Massachusetts and Houlton, Maine. The transaction will be financed with the proceeds from the sale of convertible senior notes and an acquisition line of credit.

In conjunction with the acquisition, Gregg Ritz, President and CEO of Thompson/Center Arms, will be named President of Smith & Wesson - Hunting. He will continue to lead the Thompson/Center Arms operation and will head Smith & Wesson's efforts to develop its hunting business. Ritz said, "In addition to bringing together two well-established and highly respected brands in the firearms industry, this acquisition increases opportunities for both Smith & Wesson and Thompson/Center Arms. Smith & Wesson's ability to provide capital for growth and expertise in lean manufacturing processes will provide critical support for our new product pipeline and our need for increased capacity based on strong customer demand. In turn, Thompson/Center Arms' array of barrel manufacturing expertise, hunting rifle products, and accessories fits nicely into the Smith & Wesson portfolio of pistols, revolvers, shotguns and future hunting rifles. There is absolutely no overlap in our product lines, while there is tremendous similarity in our dealer and distribution channels and our marketing vehicles."

Outlook for Fiscal 2007

Following the closing of the acquisition in early January 2007, the Company will include the results of operations for Thompson/Center Arms from that date forward. The Company currently believes that the revenue contribution from Thompson/Center Arms for the period from the closing date to the end of the Company's 2007 full fiscal year, which is April 30, 2007, will be approximately $18.6 million. Therefore, the Company now expects net product sales for the full 2007 fiscal year to be approximately $218.6 million.

It should be noted that excluding the impact of certain non-cash purchase accounting charges, the acquisition will be $0.01 accretive to the Company's anticipated earnings per diluted share in fiscal 2007. It should also be noted that the results for the January through April 2007 period are not reflective of the results expected for Thompson/Center Arms on an annual basis due to the seasonality of the hunting business, which is stronger in the May through December timeframe.

In accordance with acquisition purchase accounting, the Company expects to record non-cash charges of approximately $7.0 million on a pre-tax basis or about $0.10 per share on an after-tax basis. Therefore, net income for fiscal 2007 is now anticipated to be approximately $11.5 million, or $0.27 per diluted share, versus prior guidance of $15.0 million, or $0.36 per share. It should be noted that the impact of purchase accounting will not be fully known until after the transaction closes.

Outlook for Fiscal 2008

Golden added, "We are especially pleased with the fact that the strategic acquisition of Thompson/Center Arms will provide us a full year of increased net sales for fiscal 2008. We now expect net sales for the fiscal year ending April 30, 2008 of approximately $320.0 million, an increase of $70 million from our previous guidance for fiscal 2008, and reflective of the Thompson/Center Arms acquisition."

We expect net income for the fiscal year ending April 30, 2008 of approximately $27.0 million, or $0.60 per diluted share, which reflects an increase from our previous guidance for 2008 earnings per diluted share of $0.52, and a 122% increase from our anticipated 2007 earnings per diluted share, and reflective of the Thompson/Center Arms acquisition.

Barry Monheit, Chairman of the Board of Smith & Wesson Holding Corporation, said, "The Board is extremely pleased with this acquisition. We are not only acquiring a company of tremendous quality and reputation, but the acquisition itself clearly demonstrates the commitment of Mike Golden and his team to execute on the Company's strategy to gain a significant presence in safety, security, protection and sport."

Long-Term Outlook

Golden concluded, "Over the course of fiscal 2006 and fiscal 2007, we have consistently delivered on our commitment to grow our core handgun business and diversify our company into new areas of safety, security, protection and sport. The acquisition of Thompson/Center Arms, Inc. is a key milestone in that strategy. It places us clearly and immediately into the hunting rifle market and, excluding the impact of non-cash purchase accounting charges, is immediately accretive to our earnings. We believe that, once we gain the benefit of the various synergies we expect, our operating results, including our margins and operating expenses, for periods after fiscal 2008 will continue to be positively impacted by giving us a significant presence in the long gun market."

 

[JD]

JC your may be right. This may be the down fall of T/C. Only time will tell.

Then again it may be what they needed to move forward. Don't get me wrong I don't like the fact that they sold to S&W. But Greg Ritz is still the President of T/C and the S&W hunting division. He is basically a marketing genius. As long as they produce a decent product, the public will buy it. For the simple fact that everywhere you look all you see and hear is T/C this and T/C that.

Of course the more educated shooter / collector will be less likely to fall for all the hype without hard evidence. However there are far more people who will make the purchase because the advertising says it's so.

 

[jcchartboy]

Then again it may be what they needed to move forward. Don't get me wrong I don't like the fact that they sold to S&W. But Greg Ritz is still the President of T/C and the S&W hunting division. He is basically a marketing genius. As long as they produce a decent product, the public will buy it. For the simple fact that everywhere you look all you see and hear is T/C this and T/C that.

Of course the more educated shooter / collector will be less likely to fall for all the hype without hard evidence. However there are far more people who will make the purchase because the advertising says it's so.

That is certainly the otherside of the coin; and the one I would like to see work out!

JC

 

[Rifleman]

Getting back to the rifle. I read the Guns and Blammo article the other day and certain things caught my attention. The action has a very rigid receiver and an integral scope rail, the trigger is adjustable by the user, and it has a detachable box mag. The stock was a very nice piece of walnut for the money. The gun shot sub-moa with match ammo,this in a sporter weight barrel. All for only 800 bucks. If the production guns match the one in the article, then it should be a winner indeed. This comes from a NON T/C fan. I think this rifle is very well thought out. Make mine SS with a Mcmillian stock for 900, in 300 WSM.

 

[choc-dog]

response to JCCHARTBOY,

I agree we will see some changes in the later half of this year at T/C but it will not be in product quality. What is likely to occur is an INFUSSION of capital investment to increase T/C production capability. T/C is operating at capacity now and needs new buildings and equipment to continue
growing its market share. This was the total purpose of the sale. The
T/C /S &W was a marriage of mutual interest without the need of a pre-nuptual agreement. T/C got the capital investment it needed without going to the bank and over extending itself and S & W was able to diversify its position it the gun market.

Yes I AGREE there will be some changes but if S & W is smart they will leave Gregg Ritz alone. It is to early to predict dome and gloom.
While you are correct that is the past these buy outs have not been positive. I believe the present gun industry invironment precludes
destoying what you desire most as an owner/manufacurer.

If you want something to worry about...worry about Ruger. They have a big hole to crawl out of with the American gun buyer. They need a new trigger that is adjustable and improve barrel quality. Savage and the European imports have cut into the american rifle market and Ruger
has experienced the largest loss of market share.

The announcement that Walmart is discontinuing guns sales in about 1/3 of its national stores hurts Remington. Remington needs that volume to keep Illion,New York working.

This new T/C Icon bolt action rifle will hurt Kimber the most. If T/C incorporates the new Obermeyer 5R rifling into the rest of the T/C
center fire barrel line ... you better buy some stock in S & W holding Co.

How is your Mauser build going??

 

[big6x6]

If you want something to worry about...worry about Ruger. They have a big hole to crawl out of with the American gun buyer.

Agree 100%. 10/22 sales will only get you so far..

 

[richdeerht]

The one thing I didn't like about the Icon is it's heavy. If I heard the video correctly (and I listened twice), it's 7 3/4 lb. That's a little porky for a short action rifle.

 

[omega]

Gregg saw the market trend of all the bot action companies going down market. He figured there were enough people building cheap rifles and felt that the consumer wanted a little bit of good old American pride built into their next gun.
This year for the first time centerfire sales exceeded ML sales at T/C, a credit to the Pro Hunter. I guess Gregg was right that folks were OK with paying for quality.

 

[n8dawg6]

i dont mind the weight of the icon . . . the kimber .308 is an excellent rifle, but every report ive read notes the unpleasant recoil from a <6 lb. .308 rifle. i suppose 8 lbs might be a little overboard, but i wouldnt really want it to be much, if any, lighter than 7 lbs.

ruger seems to be partially cleaning up its act w/ the introduction of the hawkeye bolt-action rifle . . . this rifle has an improved trigger . . . but ruger doesnt say anything about an improved barrel.

my bolt-action rifles are ALL rugers, but i dont go out of my way to defend them. i know their limitations. nevertheless, my 77/22 has always been a tackdriver, and my m77 mkII in .270 is a MOA rifle for 3-shot groups. the triggers on both rifles are not very good, in fact, they are the worst of any of the guns i own. but they are reliable. my 7x57 mauser m77 won't group at all so far, even w/ a replacement stock. but it's such a sweet-shooting round, i can't quit the rifle! :lol: also . . . it's sort of a project . . . ONE DAY . . . i will make it shoot!