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Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2009, the Company reported net sales of $63.5 million and earnings per share of $0.30, compared with sales of $42.5 million and earnings per share of $.07 in the first quarter of 2008.
The Company also announced today that its Board of Directors declared a dividend of 8.6¢ per share for the first quarter, for shareholders of record as of May 15, 2009, payable on May 29, 2009.
Chief Executive Officer Michael O. Fifer made the following comments related to the first quarter of 2009:
• The level of demand for our products during the first quarter of 2009 has been unusually high, with more than 500,000 units ordered.
• Our firearms sales grew 55.5% from the first quarter of 2008 and 8.7% from the fourth quarter of 2008.
• Our firearms unit production grew 69.3% from the first quarter of 2008 and 25.6% from the fourth quarter of 2008.
• Our backlog grew to 458,900 units and $136.3 million at the end of the first quarter of 2009, from 175,900 units and $47.8 million at the end of 2008.
• We had a successful launch of a new product platform, the LCR, our Lightweight, Compact Revolver.
• Cash generated from operations during the first quarter of 2009 was $10.4 million. At the end of the first quarter of 2009, our cash, cash equivalents and short-term investments totaled $33.9 million. Our pre-LIFO working capital of $96.4 million, less the LIFO reserve of $44.1 million, resulted in working capital of $52.3 million and a current ratio of 2.9 to 1. The Company has no debt.
• During the first quarter of 2009, capital expenditures totaled $3.7 million. We expect to invest approximately $12 million for capital expenditures during 2009.
Chief Executive Officer Michael O. Fifer issued a letter to Ruger shareholders today, discussing the market conditions, manufacturing, operating results, and the first quarter dividend. Also today, the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2009. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release - View Financial Statements.
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. 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.
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. With products made in America, Ruger offers consumers almost 800 variations of more than 40 product lines, across both the Ruger and Marlin brands. For almost 75 years, Ruger has been a model of corporate and community responsibility. Our motto, “Arms Makers for Responsible Citizens®,” echoes our commitment to 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®”