Sturm, Ruger & Company, Inc. Reports First Quarter Earnings of 44¢ per Share

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2010, the Company reported net sales of $68.3 million and earnings per share of 44¢, compared with sales of $63.5 million and earnings per share of 30¢ in the first quarter of 2009.

Chief Executive Officer Michael O. Fifer made the following comments related to the Company's first quarter of 2010:

• Our year-over-year performance was highlighted by a 47% increase in earnings and an 8% increase in net sales.
• Demand for our products remained strong in the first quarter of 2010. Estimated sell-through of our products from distributors to retailers in the first quarter of 2010 increased by approximately 8% from the first quarter of 2009 and approximately 21% from the fourth quarter of 2009. This sales growth, despite declines of 4% and 5% in National Instant Criminal Background Check System (NICS) background checks over the same periods, suggests we gained market share.
• Our firearms unit production increased 3% from the fourth quarter of 2009, and 15% from the first quarter of 2009.
• Our backlog grew to 239,900 units and $72 million at the end of the first quarter of 2010, from 181,000 units and $60 million at the end of 2009.
• In January, we launched the SR9c, a compact version of the full-size SR9 striker-fired, semi-automatic pistol. The SR9c has been very popular since its introduction, and it has also generated renewed interest in the full-size SR9 pistol.
• New product introductions, including the new SR9c pistol, remain a strong driver of demand, and products introduced since January 2008 represented $27 million or 39% percent of sales in the first quarter of 2010.
• Cash generated from operations during the first quarter of 2010 was $10 million. At the end of the first quarter of 2010, our cash and equivalents totaled $59 million. Our current ratio is 3.1 to 1 and we have no debt.
• During the first quarter of 2010, capital expenditures totaled $5.7 million, much of it related to tooling and equipment for new products. We expect to invest approximately $12 to $18 million for capital expenditures during 2010.
• At the end of the first quarter of 2010, stockholders' equity was $103 million, which equates to a book value of $5.39 per share, of which $3.08 per share was cash and equivalents.

Chief Executive Officer Michael O. Fifer issued a letter to Ruger shareholders today, and the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2010. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release - View Financial Statement.

Both the Quarterly Report on Form 10-Q and the letter to Ruger shareholders on Form 8-K are 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 and the letter to shareholders to ensure that they have adequate information to make informed investment judgments.