Sturm, Ruger & Company, Inc. Reports First Quarter Diluted Earnings of $2.16 Per Share and Declares Quarterly Dividend of 86¢ Per Share

May 05, 2021

Sturm, Ruger & Company, Inc. (NYSE: RGR) announced today that for the first quarter of 2021 the Company reported net sales of $184.4 million and diluted earnings of $2.16 per share, compared with net sales of $123.6 million and diluted earnings of 87¢ per share in the first quarter of 2020.

The Company also announced today that its Board of Directors declared a dividend of 86¢ per share for the first quarter for stockholders of record as of May 17, 2021, payable on May 28, 2021. 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 commented on the financial results for the first quarter of 2021, "Strengthening our workforce and realizing operational efficiencies resulted in an outstanding quarter. I could not be more proud of how well our folks rose to the challenges posed by the COVID-19 pandemic and capitalized on the opportunities presented by the historic surge in demand during the past year. But we did not allow the frenetic pace of our business to distract us from our long-term goal of driving shareholder value. Our focus on our new product development initiatives remained steadfast. Consequently, in March we introduced the Ruger Max-9, a versatile 9mm pistol that has been met with tremendous excitement. We look forward to additional exciting product launches in 2021, including the return of Marlin lever action rifles, which we plan to begin shipping in the fourth quarter."

Mr. Killoy made the following observations related to the Company's first quarter 2021 performance:

• The estimated unit sell-through of the Company's products from the independent distributors to retailers increased 9% in the first quarter of 2021 compared to the prior year period. For the same period, the National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) increased 13%. This growth is attributable to increased consumer demand for firearms in the first quarter of 2021 and has likely been constrained due to limited available inventory in the distribution channel.
• Sales of new products, including the Wrangler, the Ruger-57, the LCP II in .22 LR, the PC Charger, and the Max-9 pistol, represented $34.8 million or 21% of firearm sales in the first quarter of 2021. New product sales include only major new products that were introduced in the past two years.
• During the first quarter of 2021, the Company's finished goods inventory and distributor inventories of the Company's products increased slightly. However, in the aggregate, total Company and distributor inventories decreased 153,000 units from the end of the first quarter of 2020.
• Cash provided by operations during the first quarter of 2021 was $27.8 million. At April 3, 2021, our cash and short-term investments totaled $146.1 million. Our current ratio is 3.5 to 1 and we have no debt.
• In the first quarter of 2021, capital expenditures totaled $5.5 million. We expect our 2021 capital expenditures to total approximately $20 million, most of which relate to new product introductions.
• In the first quarter of 2021, the Company returned $12.5 million to its shareholders through the payment of dividends.
• At April 3, 2021, stockholders' equity was $288.5 million, which equates to a book value of $16.41 per share, of which $8.31 per share was cash and short-term investments.

Today, the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2021. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release. - View Release

Tomorrow, May 6, 2021, Sturm, Ruger will host a webcast at 9:00 a.m. ET 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 2584342.

The Company will host a virtual Annual Meeting of Shareholders at 9 a.m. ET on Wednesday, May 12. The virtual meeting is open to shareholders as well as anyone interested in the Company. The login information is available at www.virtualshareholdermeeting.com/RGR2021.

The Quarterly Report on Form 10-Q for the first quarter of 2021 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 for the first quarter of 2021 to ensure that they have adequate information to make informed investment judgments.