Sturm, Ruger & Company, Inc. Reports First Quarter 2011 Earnings of 42¢ Per Share
April 26, 2011
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter 2011, the Company reported net sales of $75.4 million and earnings of 42¢ per share, compared with net sales of $68.3 million and earnings of 44¢ per share in 2010.
Chief Executive Officer Michael O. Fifer made the following comments related to the Company's results:
- The Company launched the new LC9 pistol and the new Gunsite Scout rifle in the first quarter of 2011. New product introductions remain a strong driver of demand and represented $20.8 million or 29% of sales in the first quarter of 2011.
- Demand for our products remained strong in the first quarter of 2011. The estimated sell-through of the Company's products from distributors to retailers in the first quarter of 2011 increased by approximately 12% from the first quarter of 2010 and 21% from the fourth quarter of 2010.
- The incoming order rate in the first quarter of 2011 increased 65% from the first quarter of 2010 and more than doubled from the fourth quarter of 2010.
- National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) increased 13% from the first quarter of 2010 and decreased 7% from the fourth quarter of 2010.
- Cash generated from operations during the first quarter of 2011 was $20.7 million. At April 2, 2011, our cash and equivalents and short-term investments totaled $72.4 million. Our current ratio is 3.0 to 1 and we have no debt.
- During the first quarter of 2011, capital expenditures totaled $4.3 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 April 2, 2011, stockholders' equity was $119.2 million, which equates to a book value of $6.32 per share, of which $3.84 per share was cash and equivalents and short-term investments.
During the first quarter of 2011, we returned $2.9 million to our shareholders through:
The payment of $0.9 million of dividends, and
The repurchase of 133,400 shares of our common stock in the open market at an average price of $14.94 per share, for a total of $2.0 million.
As of the end of the first quarter of 2011, $8.0 million remains available for future stock repurchases.
Today, the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2011. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. - View Release
The Quarterly Report on Form 10-Q 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 Form 10-Q to ensure that they have adequate information to make informed investment judgments.
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