Sturm, Ruger & Company, Inc. Reports Third Quarter Diluted Earnings Of $1.98 Per Share and Declares Quarterly Dividend Of 79¢ Per Share

November 03, 2021

Sturm, Ruger & Company, Inc. (NYSE: RGR) announced today that for the third quarter of 2021 the Company reported net sales of $178.2 million and diluted earnings of $1.98 per share, compared with net sales of $145.7 million and diluted earnings of $1.39 per share in the third quarter of 2020.

For the nine months ended October 2, 2021, net sales were $562.7 million and diluted earnings were $6.64 per share. For the corresponding period in 2020, net sales were $399.6 million and diluted earnings were $3.31 per share.

The Company also announced today that its Board of Directors declared a dividend of 79¢ per share for the third quarter for stockholders of record as of November 15, 2021, payable on November 30, 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 third quarter of 2021, "Despite taking a one week shutdown in July, we were able to increase production by 22% from last year. This was our first shutdown in two years, which gave our workforce a very well-deserved break, allowed us to perform some maintenance and reconfigure some of our manufacturing operations, which has us better prepared as we head into the fourth quarter and 2022."

Mr. Killoy continued, "Despite a moderation of overall demand as reflected in the last two quarters of adjusted NICS, we shipped all of the firearms that we built this quarter without the need to aggressively promote or discount our products. Our finished goods inventories remain near historic lows and we have just begun to replenish the distributor and retail inventories that were largely depleted over the past eighteen months, putting us in a great position as we head into the fourth quarter, which has traditionally been a period of strong demand. In addition to our established firearms, we are working hard on some exciting new product initiatives, including the return of Marlin lever action rifles, which we plan to begin shipping later in the fourth quarter."

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

• The estimated unit sell-through of the Company's products from the independent distributors to retailers increased 9% in the first nine months 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) decreased 11%. The increase in the sell-through of the Company's products compared favorably to the decrease in adjusted NICS background checks and may be attributable to the following:
  • Strong consumer demand for the Company's products,
  • Increased production in 2021, and
  • Introduction of new products that have been met with strong demand.
• Sales of new products, including the Ruger-57, the LCP II in .22 LR, the PC Charger, the MAX-9 pistol, and the LCP MAX represented $116.2 million or 22% of firearm sales in the first nine months of 2021. New product sales include only major new products that were introduced in the past two years.
• During the third quarter of 2021, the Company's finished goods inventory remained substantially unchanged and distributor inventories of the Company's products increased 67,300 units. Inventories of most product families remain significantly below pre-COVID-19 pandemic levels.
• Cash provided by operations during the first nine months of 2021 was $117.0 million. At October 2, 2021, our cash and short-term investments totaled $192.7 million. Our current ratio is 3.8 to 1 and we have no debt.
• In the first nine months of 2021, capital expenditures totaled $15.6 million. We expect our 2021 capital expenditures to total approximately $20 million, most of which relate to new product introductions.
• In the first nine months of 2021, the Company returned $45.2 million to its shareholders through the payment of dividends.
• At October 2, 2021, stockholders' equity was $338.1 million, which equates to a book value of $19.21 per share, of which $10.95 per share was cash and short-term investments.

Today, the Company filed its Quarterly Report on Form 10-Q for the third quarter of 2021. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release, with one additional explanatory footnote with respect to the Condensed Consolidated Statements of Income and Comprehensive Income. - View Release

Tomorrow, November 4, 2021, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the third quarter operating results. Interested parties can access the webcast at Ruger.com/corporate or by dialing 855-871-7398, participant code 5189611.

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