Sturm, Ruger & Company, Inc. Reports Third Quarter 2012 Fully Diluted Earnings of 88¢ Per Share
October 31, 2012
Sturm, Ruger & Company, Inc. (NYSE: RGR) announced today that for the third quarter 2012, the Company reported net sales of $118.2 million and fully diluted earnings of 88¢ per share, compared with net sales of $80.5 million and fully diluted earnings of 56¢ per share in the third quarter of 2011.
For the nine months ended September 29, 2012, net sales were $350.1 million and fully diluted
earnings were $2.58 per share. For the corresponding period in 2011, net sales were $235.6 million
and fully diluted earnings were $1.55 per share.
The Company also announced today that its Board of Directors declared a dividend of 38.2¢ per share for the third quarter, for shareholders of record as of November 12, 2012, payable on November 26, 2012. This dividend varies every quarter because the Company pays a percent of earnings rather than a fixed amount per share. Effective with the dividend paid in March 2012, the Company increased the percent of quarterly earnings paid out as dividends by 67%. This dividend is approximately 40% of net income.
Chief Executive Officer Michael O. Fifer made the following comments related to the Company's results:
Today, the Company filed its Quarterly Report on Form 10-Q for the third quarter of 2012. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. - View Release.
- Our earnings increased 62% from the third quarter of 2011, driven by the 47% growth in sales and our ongoing focus on continuous improvement in our operations.
- New product introductions were a significant component of our sales growth as new product sales represented $130.3 million or 38% of sales in the first nine months of 2012. New product introductions in the first nine months of 2012 included:
- Ruger American Rifle
- SR22 pistol
- 10/22 Takedown rifle
- 22/45 Lite pistol
- Single-Nine revolver
- Demand for our products outpaced the growth in overall industry demand as measured by the National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) for both the third quarter and nine months ended September 29, 2012 as illustrated in Earning Release - View Release.
- Cash generated from operations during the nine months ended September 29, 2012 was $61.8 million. At September 29, 2012, our cash, cash equivalents, and short-term investments totaled $105.1 million, an increase of $24 million from December 2011. Our current ratio is 3.2 to 1 and we have no debt.
- In the first nine months of 2012, capital expenditures totaled $20.3 million, much of it related to new products and the expansion of production capacity. We expect to invest approximately $25 million for capital expenditures during 2012.
- In the first nine months of 2012, the Company returned $17.5 million to its shareholders through the payment of dividends. An additional $7.3 million in dividends will be paid to shareholders on November 26, 2012.
- At September 29, 2012, stockholders' equity was $174 million, which equates to a book value of $9.08 per share, of which $5.49 per share was cash and equivalents.
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.
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®”