Sturm, Ruger & Company, Inc. Reports First Quarter
Fully Diluted Earnings of $1.22 Per Share
and Declares Dividend of 49¢ Per Share
May 05, 2014
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2014 the Company reported net sales of $169.9 million and fully diluted earnings of $1.22 per share, compared with net sales of $155.9 million and fully diluted earnings of $1.20 per share in the first quarter of 2013.
The Company also announced today that its Board of Directors declared a dividend of 49¢ per share for the first quarter, for shareholders of record as of May 16, 2014, payable on May 30, 2014. This dividend varies every quarter because the Company pays a percent of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.
Chief Executive Officer Michael O. Fifer made the following observations related to the Company's 2014 first quarter performance:
Today, the Company filed its Quarterly Report on Form 10-Q for 2014. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. - View Release.
- Our earnings increased 2% from the first quarter of 2013 on a 9% increase in sales. The main driver of the reduced operating margins was a product mix shift away from unusually strong sales of higher-margin firearms accessories that we enjoyed one year ago. Additionally, increased depreciation expense affected operating margins. At the same time, our EBITDA of $47.3 million increased 13% from the first quarter 2013 EBITDA of $41.9 million.
- New products represented $41.3 million or 24% of firearm sales in the first quarter of 2014.
- Demand for our products significantly outpaced the growth in industry demand as measured by the National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) for the first quarter of 2014.
- Cash generated from operations during the first quarter of 2014 was $15.8 million. At March 29, 2014, our cash totaled $49.8 million. Our current ratio is 1.9 to 1 and we have no debt.
- In the first quarter of 2014, capital expenditures totaled $9.6 million, much of it related to tooling fixtures and equipment for new product introductions and to upgrade and modernize manufacturing equipment. We expect to invest approximately $35 million on capital expenditures during 2014 as we continue to prioritize new product development.
- In the first quarter of 2014, the Company returned $10.5 million to its shareholders through the payment of dividends.
- At March 29, 2014, stockholders' equity was $192.8 million, which equates to a book value of $9.94 per share, of which $2.57 per share was cash.
Tomorrow, May 6, 2014, Sturm, Ruger will host a webcast of its Annual Meeting of Stockholders at 9:00 a.m. ET. Interested parties can access the webcast at www.ruger.com/corporate or by dialing 866-297-6395, participant code 37122276.
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 Quarterly Report on 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®”