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Sturm, Ruger & Company, Inc. Reports Third Quarter Results and Files Quarterly Report on Form 10-Q

Sturm, Ruger & Company, Inc. (NYSE-RGR), today filed its Quarterly Report on Form 10-Q for the third quarter of 2008 and a letter to Ruger shareholders on Form 8-K, which have been posted and are available on the SEC website at and the Ruger website at The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release - View Financial Statements. However, investors are urged to read the complete Form 10-Q and the letter to shareholders to ensure that they have adequate information to make informed investment judgments.

For the third quarter of 2008, the Company reported net sales of $41.8 million and earnings per share of $0.02, compared with sales of $31.9 million and a loss per share of $(0.03) in the third quarter of 2007.

Chief Executive Officer, Michael O. Fifer made the following comments related to the third quarter of 2008:

• Our sales grew 31% from the third quarter of 2007 and 8% from the second quarter of 2008, primarily on the strength of new product shipments.

• At the end of the quarter, our cash, cash equivalents and short-term investments totaled $22.6 million. Our pre-LIFO working capital of $91.6 million, less the LIFO reserve of $47.5 million, resulted in working capital of $44.1 million and a current ratio of 2.8 to 1.

• To enhance and protect our strong liquidity in reaction to the recent turmoil in the financial markets, in late October we drew down $1 million from our $25 million credit facility to ensure our access to it, and moved approximately $16 million from money market funds investing in Treasury Bills to direct investments in Treasury Bills.

• The Company has completed its share repurchase announced in April 2008. Under a 10b5-1 program that expired on October 17, the Company repurchased a total of 1.5 million shares of its common stock for $9.9 million in the open market, representing 7.2% of the outstanding shares, at an average price per share of $6.59. At the completion of this program and before drawing on the credit line, cash and equivalents were approximately $20 million and there were 19.1 million shares outstanding.

• Recently, the Company received a small number of reports from the field that its LCP pistols can discharge if dropped onto a hard surface. Although no injuries were reported, the Company recalled all LCP pistols in October 2008 to offer free safety upgrades. The estimated cost of this retrofit program of approximately $2.3 million was recorded in the third quarter of 2008 and had the impact of reducing earnings per share by $0.07 in the quarter. This safety upgrade program is expected to be in effect for several years.