Sturm, Ruger & Company, Inc. Reports 2016 Diluted Earnings of $4.59 Per Share and Declares Dividend of 44¢ Per Share

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2016 the Company reported net sales of $664.3 million and diluted earnings of $4.59 per share, compared with net sales of $551.1 million and diluted earnings of $3.21 per share in 2015.

For the fourth quarter of 2016, net sales were $161.8 million and diluted earnings were $1.10 per share. For the corresponding period in 2015, net sales were $152.4 million and diluted earnings were 88¢ per share.

The Company also announced today that its Board of Directors declared a dividend of 44¢ per share for the fourth quarter, for shareholders of record as of March 17, 2017, payable on March 31, 2017. 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 results:

• In 2016, net sales increased 21% and earnings per share increased 43% from 2015.
• EBITDA was $171.4 million, or 26% of sales, in 2016, an increase of 29% from $132.5 million, or 24% of sales, in 2015.
• The estimated sell-through of the Company's products from the independent distributors to retailers increased 12% in 2016 from 2015. For the same period, the National Instant Criminal Background Check System background checks (as adjusted by the National Shooting Sports Foundation) increased 10%.
• New products represented $192.6 million or 29% of firearms sales in 2016, compared to $115.4 million or 21% of firearms sales in 2015. New product sales include only major new products that were introduced in the past two years. In 2016, new products included the Precision Rifle, the AR-556 modern sporting rifle, the LC9s pistol, the Mark IV pistols, the LCP II pistol, and the American pistol. The AR-556 rifle and the LC9s pistol will not be considered new products in 2017.
• Cash generated from operations during 2016 was $105 million. At December 31, 2016, our cash totaled $87 million. Our current ratio is 2.8 to 1 and we have no debt.
• In 2016, capital expenditures totaled $35 million, an increase from $29 million in 2015. We expect our 2017 capital expenditures to total approximately $40 million, as we continue to prioritize new product development.
• In 2016, the Company returned $47 million to its shareholders through:
  • the payment of $33 million of dividends, and
  • the repurchase of 283,343 shares of our common stock in the open market at an average price of $49.43 per share, for a total of $14 million.
• During the period from January 1, 2017 through February 17, 2017, the Company repurchased 633,600 shares of its common stock in the open market at an average price of $49.67 per share, for a total of $31.5 million.

Today, the Company filed its Annual Report on Form 10-K for 2016. The financial statements included in this Annual Report on Form 10-K are attached to this press release. - View Release
Tomorrow, February 23, 2017, Sturm, Ruger will host a webcast at 8:30 a.m. ET to discuss the 2016 operating results. Interested parties can access the webcast at Ruger.com/corporate or by dialing 720-634-2919, participant code 68363387.

The Annual Report on Form 10-K is available on the SEC website at Sec.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K to ensure that they have adequate information to make informed investment judgments.