Sturm, Ruger & Company, Inc. Reports 2009 Earnings of $1.44 per Share and Declares Dividend of 6¢ per Share
February 24, 2010
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2009, the Company reported net sales of $271.0 million and earnings of $1.44 per share, compared with sales of $181.5 million and earnings of 43¢ per share in 2008.
For the fourth quarter of 2009, the Company reported net sales of $63.9 million and earnings of 31¢ per share, compared with sales of $58.5 million and earnings of 28¢ per share in the fourth quarter of 2008.
The Company also announced today that its Board of Directors declared a dividend of 6¢ per share for the fourth quarter, for shareholders of record as of March 12, 2010, payable on March 26, 2010.
Chief Executive Officer Michael O. Fifer made the following comments related to 2009:
- Our firearms sales grew from $174 million in 2008 to $267 million in 2009 on the strength of new product shipments and overall robust firearms demand, particularly in the first half of the year.
- Estimated sell-through of our products from independent distributors to retail in 2009 increased by approximately 40% from 2008, and 86% from 2007. This annual growth substantially exceeds the 10% and 25% growth in National Instant Criminal Background Check System (NICS) background checks over the same periods. Comparisons of NICS checks from period to period are often used as a proxy for consumer demand for firearms.
- In response to the significant increase in demand in 2009, the Company increased production in 2009 by 56% from 2008, and 101% from 2007. This increased production was facilitated by the Company's implementation of lean manufacturing, an ongoing process that started in 2006.
- Cash generated from operations during 2009 was $46.7 million. At December 31, 2009, our cash, cash equivalents and short-term investments totaled $55.7 million. Our pre-LIFO working capital of $104.0 million, less the LIFO reserve of $38.7 million, resulted in working capital of $65.3 million and a current ratio of 3.0 to 1. The Company has no debt.
- In 2009, capital expenditures totaled $13.8 million. We expect to invest approximately $10 to $15 million for capital expenditures during 2010.
- In 2009, we paid dividends totaling $5.8 million to our shareholders.
- At December 31, 2009, $4.7 million remained authorized for share repurchases. On February 5, 2010, we announced that our Board of Directors expanded this repurchase program from $4.7 million to $10 million.
Today, the Company filed its Annual Report on Form 10-K for 2009. The financial statements included in this Annual Report on Form 10-K are attached to this press release - View Financial Statements.
The Annual Report on Form 10-K is available on the SEC website at www.sec.gov and the Ruger website. Investors are urged to read the complete Form 10-K to ensure that they have adequate information to make informed investment judgments.
The Company will host a webcast on Thursday, February 25, 2010, at 9:00 a.m. EST to discuss the 2009 operating results. Interested parties can access the webcast at www.ruger.com/corporate or www.earnings.com. Alternatively, interested parties can call (866) 356-3095, participant passcode 86419260.
About Sturm, Ruger & Co., Inc.
Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. The only full-line manufacturer of American-made firearms, Ruger offers consumers over 400 variations of more than 30 product lines. For more than 60 years, Ruger has been a model of corporate and community responsibility. Our motto, "Arms Makers for Responsible Citizens®," echoes the importance of these principles as we work hard to deliver quality and innovative firearms.
The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.
Sturm, Ruger & Co., Inc. “Arms Makers for Responsible Citizens®”