Sturm, Ruger & Company, Inc. Reports First Quarter Diluted Earnings of $1.21 Per Share and Declares Dividend of 48¢ Per Share

May 02, 2016

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2016 the Company reported net sales of $173.1 million and diluted earnings of $1.21 per share, compared with net sales of $137.0 million and diluted earnings of 81¢ per share in the first quarter of 2015.

The Company also announced today that its Board of Directors declared a dividend of 48¢ per share for the first quarter for stockholders of record as of May 13, 2016, payable on May 27, 2016. This dividend varies every quarter because the Company pays a percentage 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 2016 first quarter performance:

• In the first quarter of 2016, net sales increased 26% and earnings per share increased 49% from the first quarter of 2015.
• EBITDA was $44.8 million, or 25.9% of sales, in the first quarter of 2016, an increase of 34.7% from $33.2 million, or 24.3% of sales, in the comparable prior year period.
• The increase in estimated sell-through of the Company's products from the independent distributors to retailers is attributable to:
  • the increase in overall industry demand,
  • new product introductions, and
  • increased production capacity and availability of products in demand.
• New products, including the American Pistol, the Precision Rifle, the AR-556 modern sporting rifle, and the LC9s pistol, represented $50.3 million or 29% of firearm sales in the first quarter of 2016. New product sales include only major new products that were introduced in the past two years.
• The estimated unit sell-through of the Company's products from the independent distributors to retailers increased 17% in the first quarter of 2016 from the comparable prior year period. For the same period, the National Instant Criminal Background Check System background checks (as adjusted by the National Shooting Sports Foundation) increased 18%.
• During the first quarter of 2016, the Company's finished goods inventory decreased by 14,600 units and distributor inventories of the Company's products decreased by 54,300 units.
• Cash generated from operations during the first quarter of 2016 was $29.4 million. At April 2, 2016, our cash totaled $80.5 million. Our current ratio is 2.6 to 1 and we have no debt.
• In the first quarter of 2016, capital expenditures totaled $6.3 million, much of it related to tooling and equipment for new products. We expect our 2016 capital expenditures to total approximately $25 million.
• In the first quarter of 2016, the Company returned $6.6 million to its shareholders through the payment of dividends.
• At April 2, 2016, stockholders' equity was $239.7 million, which equates to a book value of $12.64 per share, of which $4.24 per share is cash.

Today, the Company filed its Quarterly Report on Form 10-Q. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. - View Release
Tomorrow, May 3, 2016, 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 855-871-7398, participant code 94955658.

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.