Sturm, Ruger & Company, Inc. Reports 2010 Earnings of $1.48 Per Share And Declares Dividend Of 5¢ Per Share
February 23, 2011
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2010, the Company reported net sales of $255.2 million and earnings of $1.48 per share, compared with sales of $271.0 million and earnings of $1.44 per share in 2009.
For the fourth quarter of 2010, net sales were $64.1 million and earnings were 30¢ per share. For the corresponding period in 2009, net sales were $63.9 million and earnings were 31¢ per share.
The Company also announced today that its Board of Directors declared a dividend of 5¢ per share for the fourth quarter, for shareholders of record as of March 11, 2011, payable on March 25, 2011.
Chief Executive Officer Michael O. Fifer made the following comments related to the Company's results:
- In 2010, the Company launched several new products including the SR9c compact pistol, the LCR-357 revolver, and the SR40 striker-fired pistol. New product introductions remain a strong driver of demand and represented $62.3 million or 24.8% of sales in 2010.
- The estimated sell-through of the Company's products from distributors to retailers in 2010 increased 2% from 2009. During this period, National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) decreased 1%.
- Cash generated from operations during 2010 was $32.5 million. At December 31, 2010, our cash and equivalents and short-term investments totaled $57.6 million. Our current ratio is 3.2 to 1 and we have no debt.
- In 2010, capital expenditures totaled $19.4 million, much of it related to tooling and equipment for new products. We expect to invest approximately $15 million for capital expenditures during 2011.
- At December 31, 2010, stockholders' equity was $114.5 million, which equates to a book value of $6.08 per share, of which $3.06 per share was cash and equivalents and short-term investments.In 2010, we returned $12.0 million to our shareholders through the following:
- Paying $6.3 million of dividends, and
- Repurchasing 412,000 shares of our common stock in the open market at an average price of $13.83 per share, for a total of $5.7 million.
- In January 2011, we repurchased an additional 133,400 shares of our common stock in the open market at an average price of $14.98 per share.
Today, the Company filed its Annual Report on Form 10-K for 2010. The financial statements included in this Annual Report on Form 10-K are attached to this press release. - View Release
The Annual Report on Form 10-K is available on the SEC website at www.sec.gov and the Ruger website at www.ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K to ensure that they have adequate information to make informed investment judgments.
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