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Sturm, Ruger & Company, Inc. Reports Second Quarter Fully Diluted Earnings Of $1.63 Per Share And Dividend Of 65¢ Per Share

Stocks in this article: RGR

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the second quarter of 2013 the Company reported net sales of $179.5 million and fully diluted earnings of $1.63 per share, compared with net sales of $119.6 million and fully diluted earnings of 91¢ per share in the second quarter of 2012.

For the six months ended June 29, 2013, net sales were $335.4 million and fully diluted earnings were $2.83 per share. For the corresponding period in 2012, net sales were $231.9 million and fully diluted earnings were $1.71 per share.

The Company also announced today that its Board of Directors declared a dividend of 65¢ per share for the second quarter, for shareholders of record as of August 16, 2013, payable on August 30, 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 79% from the second quarter of 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 $102.7 million or 31% of firearm sales in the first half of 2013. New product introductions in the first half of 2013 included the LC380 pistol and the SR45 pistol.
  • During the second quarter and first half of 2013, the estimated unit sell-through of our products from the independent distributors to retailers increased 37% and 23% from the comparable prior year periods. Insufficient distributor inventory at December 31, 2012 severely limited the estimated sell-through from independent distributors to retailers in the first half of 2013. For the same periods, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation) increased 16% and 33%, respectively.
  • Cash generated from operations during the six months ended June 29, 2013 was $69.8 million. At June 29, 2013, our cash totaled $64.8 million. Our current ratio is 1.8 to 1 and we have no debt.
  • In the first half of 2013, capital expenditures totaled $18.8 million, much of it related to new products and the expansion of production capacity. We expect to invest approximately $35 million on capital expenditures during 2013.
  • In the first half of 2013, the Company returned $17.3 million to its shareholders through the payment of dividends.
  • At June 29, 2013, stockholders’ equity was $135.8 million, which equates to a book value of $7.02 per share, of which $3.35 per share was cash and equivalents.

Today, the Company filed its Quarterly Report on Form 10-Q for the second quarter of 2013. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

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