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Sturm, Ruger & Company, Inc. Reports 2012 Fully Diluted Earnings Of $3.60 Per Share And Declares Dividend Of 40.4¢ Per Share

Stocks in this article: RGR

Sturm, Ruger & Company, Inc. (NYSE-RGR), announced today that for 2012, the Company reported net sales of $491.8 million and fully diluted earnings of $3.60 per share, compared with net sales of $328.8 million and fully diluted earnings of $2.09 per share in 2011.

For the fourth quarter of 2012, net sales were $141.8 million and fully diluted earnings were $1.00 per share. For the corresponding period in 2011, net sales were $93.2 million and fully diluted earnings were 54¢ per share.

The Company also announced today that its Board of Directors declared a dividend of 40.4¢ per share for the fourth quarter, for shareholders of record as of March 8, 2013, payable on March 22, 2013. This dividend varies every quarter because the Company pays a percent of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.

Chief Executive Officer Michael O. Fifer made the following observations related to the Company’s results:

  • Our earnings increased 77% in 2012, driven by the 50% growth in sales and our ongoing focus on continuous improvement in our operations.
  • New product introductions were a significant component of our sales growth as new product sales represented $182.0 million or 38% of firearm sales in 2012. New product introductions in 2012 included:
    • the Ruger American rifle,
    • the 10/22 TakeDown rifle,
    • the SR22 pistol,
    • the 22/45 Lite pistol, and
    • the Single-Nine revolver.
  • Demand for our products outpaced the growth in overall industry demand as measured by the National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation) for both the fourth quarter and twelve months ended December 31, 2012 as illustrated below:
                Period ended December 31, 2012
Q4   Twelve months
Increase in estimated Ruger Units Sold

from Distributors to Retailers

73%

 

63%

 
Increase in total adjusted NICS Background Checks

41%

28%

  • Cash generated from operations during 2012 was $87.2 million. At December 31, 2012, our cash and cash equivalents totaled $31 million, a decrease of $50 million from December 2011 due to the $87 million special dividend paid in December. Our current ratio is 1.6 to 1 and we have no debt.
  • In 2012, capital expenditures totaled $27.3 million, much of it related to new products and the expansion of production capacity. We expect to invest approximately $30 million for capital expenditures during 2013.
  • In 2012, the Company returned $111.5 million to its shareholders through the payment of dividends.
  • At December 31, 2012, stockholders’ equity was $95.0 million, which equates to a book value of $4.93 per share, of which $1.61 per share was cash and equivalents.

Today, the Company filed its Annual Report on Form 10-K for 2012. The financial statements included in this Annual Report on Form 10-K are attached to this press release.

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