Sturm, Ruger & Company, Inc. Reports Second Quarter Earnings of 46¢ Per Share and Declares Dividend of 12.3¢ Per Share.
July 29, 2009
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the second quarter of 2009, the Company reported net sales of $72.4 million and earnings of 46¢ per share, compared with sales of $38.7 million and earnings of 5¢ per share in the second quarter of 2008.
For the six months ended July 4, 2009, net sales were $135.9 million and earnings were 76¢ per share. For the corresponding period in 2008, net sales were $81.2 million and earnings were 12¢ per share.
The Company also announced today that its Board of Directors declared a dividend of 12.3¢ per share for the second quarter, for shareholders of record as of August 14, 2009, payable on August 28, 2009. The amount of the dividend was based on a percentage of Operating Profit after adjustment for certain items, the same approach used by the Company last quarter when it declared its first dividend in over three years. Under this approach, the amount of the quarterly dividend fluctuates directly with certain operating results of the Company.
Chief Executive Officer Michael O. Fifer made the following comments related to the second quarter of 2009:
- Our firearms sales grew 94% from the second quarter of 2008 and 14% from the first quarter of 2009.
- The Company estimates that its year-to-date sales growth of $54.7 million can be attributed to the following:
- Approximately 50% New products (LCP, LCR, SR-9, and SR-556),
- Approximately 25% Industry-wide surge in demand that began in the fourth quarter of 2008, and
- Approximately 25% Increased marketshare.
- Our firearms unit production grew 63% from the second quarter of 2008 and 18% from the first quarter of 2009.
- We had a successful launch of a new product platform, the SR-556, our new modern sporting rifle.
- Cash generated from operations during the second quarter of 2009 was $13.1 million. At the end of the second quarter of 2009, our cash, cash equivalents and short-term investments totaled $43.6 million. Our pre-LIFO working capital of $100.0 million, less the LIFO reserve of $43.2 million, resulted in working capital of $56.8 million and a current ratio of 3.0 to 1. The Company has no debt.
- During the first half of 2009, capital expenditures totaled $6.8 million. We expect to invest approximately $12 million for capital expenditures during 2009.
- Our backlog dropped to 412,300 units as orders received in the second quarter decreased by 59% from the first quarter of 2009. This decline in orders received reflects the following:
- A reduction in the industry-wide surge in demand that began in the fourth quarter of 2008,
- The large backlog at the end of the first quarter that discouraged further orders,
- Prolonged ammunition shortage at retail that hindered retail firearms sales,
- Stronger inventories throughout the distribution channel, and
- Normal product seasonality.
Today, the Company filed its Quarterly Report on Form 10-Q for the second quarter of 2009. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release - View Financial Statements.
The Quarterly Report on Form 10-Q is available on the SEC website at www.sec.gov and the Ruger website. Investors are urged to read the complete Form 10-Q to ensure that they have adequate information to make informed investment judgments.
The Company will host a webcast on Thursday, July 30, 2009, at 9:00am EDT to discuss the second quarter operating results. Interested parties can access the webcast at www.ruger.com/corporate or www.earnings.com.
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