Sturm, Ruger & Company, Inc. Reports First Quarter Diluted Earnings of 74¢ Per Share and Declares Dividend of 29¢ Per Share

May 07, 2019

Sturm, Ruger & Company, Inc. (NYSE: RGR) announced today that for the first quarter of 2019 the Company reported net sales of $114.0 million and diluted earnings of 74¢ per share, compared with net sales of $131.2 million and diluted earnings of 81¢ per share in the first quarter of 2018.

The Company also announced today that its Board of Directors declared a dividend of 29¢ per share for the first quarter for stockholders of record as of May 17, 2019, payable on May 31, 2019. 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 Christopher J. Killoy made the following observations related to the Company's 2019 first quarter performance:

• In the first quarter of 2019, net sales and earnings per share decreased 13% and 9%, respectively, from the first quarter of 2018 due to a decline in overall market demand, as evidenced by the 8% decrease in National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation).
• Improved price realization in the first quarter of 2019 drove profitability during the quarter.
• Sales of new products, including the Pistol Caliber Carbine, the EC9s pistol, the Security-9 pistol, and the Precision Rimfire Rifle, represented $20.9 million or 20% of firearm sales in the first quarter of 2019. New product sales include only major new products that were introduced in the past two years.
• During the first quarter of 2019, the Company's finished goods inventory increased by 52,000 units and distributor inventories of the Company's products decreased by 25,000 units. In the aggregate, total Company and distributor inventories increased 27,000 units during the quarter.
• Cash used by operations during the first quarter of 2019 was $10.3 million. At March 30, 2019, our cash and short-term investments totaled $135 million. Our current ratio is 4.1 to 1 and we have no debt.
• In the first quarter of 2019, capital expenditures totaled $2.7 million. We expect our 2019 capital expenditures to total approximately $25 million, most of which relate to new product introductions.
• In the first quarter of 2019, the Company returned $4.9 million to its shareholders through the payment of dividends.
• At March 30, 2019, stockholders' equity was $273.9 million, which equates to a book value of $15.69 per share, of which $7.73 per share is cash and short-term investments.

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 8, 2019, Sturm, Ruger will host a webcast of its Annual Meeting of Stockholders at 9:00 a.m. ET and plans to discuss the first quarter operating results. Interested parties can access the webcast at Ruger.com/corporate or by dialing 855-871-7398, participant code 6877734.

The Quarterly Report on Form 10-Q is available on the SEC website at SEC.gov and the Ruger website at 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.