Colt Defense Posts Another Loss

Colt Defense lost $6.7 million dollars in the quarter ending July 31, 2012.

Compared to the same quarter from one year ago, Colt sold 23.2% more products.  Yet, the company saw a more than 250% increase in losses.  Methinks these numbers are not good.

According to the most recent SEC filing, it would appear that Colt Defense has significant outstanding debt.  Additionally, the company is “…currently under examination by a tax authority.”  The audit, which has not yet been settled, has thus far accrued about $970,000 in expenses relating to a potential settlement.

Colt Defense manufactures and sells firearms to government entities (military & law enforcement) and to Colt Manufacturing, their affiliate who sells guns to the commercial market.  This loss data is for Colt Defense only.

You can read the full SEC filing here.

Disclaimer:  I am not a financial analyst, just a guy who sometimes reads SEC filings that may be of interest to my readers.  I do not have any financial interest in Colt Defense, Colt Manufacturing or any other firearms or related companies.  Do not use my information to make any financial decisions.  That would be foolish.