Sturm, Ruger & Company, Inc. (NYSE-RGR), announced today
that for 2011, the Company reported net sales of $328.8 million and
fully diluted earnings of $2.09 per share, compared with sales of
$255.2 million and fully diluted earnings of $1.46 per share in
2010.
For the fourth quarter of 2011, net sales were $93.2 million and
fully diluted earnings were 54¢ per share. For the corresponding
period in 2010, net sales were $64.1 million and fully diluted
earnings were 30¢ per share.
The Company also announced today that its Board of Directors
declared a dividend of 21.2¢ per share for the fourth quarter, for
shareholders of record as of March 9, 2012, payable on March 23,
2012. This dividend necessarily varies every quarter because the
Company pays a percent of earnings rather than a fixed amount per
share. Effective with this dividend, the Company increased the
percent of quarterly earnings paid out as dividends by 67%.
Chief Executive Officer Michael O. Fifer made the following
comments related to the Company’s results:
- Our earnings increased 42% in 2011,
driven by the 29% growth in sales and our ongoing focus on
continuous improvement in our operations.
- In 2011, new product introductions were
a significant component of our sales growth as new product sales
represented $98.6 million or 30% of sales in 2011.
- The estimated sell-through of our
products from independent distributors to retailers in 2011
increased 20% from 2010. During this period, National Instant
Criminal Background Check System (“NICS”) background checks (as
adjusted by the National Shooting Sports Foundation) increased
14%.
- Cash generated from operations during
2011 was $57.4 million. At December 31, 2011, our cash and cash
equivalents totaled $81.1 million, an increase of $23.5 million
from December 2010. Our current ratio is 3.0 to 1 and we have no
debt.
- In 2011, capital expenditures totaled
$22.1 million, much of it related to tooling and equipment for new
products. We expect to invest approximately $20 million for capital
expenditures during 2012.
- At December 31, 2011, stockholders’
equity was $137.4 million, which equates to a book value of $7.20
per share, of which $4.25 per share was cash and equivalents.
- In 2011, we returned $10.2 million to
our shareholders through the following:
- Payment of $8.2 million of dividends,
and
- Repurchase of 133,400 shares of our
common stock in the open market at an average price of $14.94 per
share, for a total of $2.0 million.
- In May 2011, the Company announced the
Ruger Million Gun Challenge to benefit the National Rifle
Association. Ruger pledged to donate $1 to the NRA for every Ruger
firearm sold from April 2011 through March 2012, with the goal of
selling one million Ruger firearms and donating $1 million to the
NRA. Through December 2011, Ruger has donated $871,100 to the
NRA.
Today, the Company filed its Annual Report on Form 10-K for
2011. The financial statements included in this Annual Report on
Form 10-K are attached to this press release.
The Annual Report on Form 10-K 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 Annual Report on Form 10-K
to ensure that they have adequate information to make informed
investment judgments.
About Sturm, Ruger
Sturm, Ruger was founded in 1949 and is one of the nation’s
leading manufacturers of high-quality firearms for the commercial
sporting market. Sturm, Ruger is headquartered in Southport, CT,
with manufacturing facilities located in Newport, NH and Prescott,
AZ.
The Company may, from time to time, make forward-looking
statements and projections concerning future expectations. Such
statements are based on current expectations and are subject to
certain qualifying risks and uncertainties, such as market demand,
sales levels of firearms, anticipated castings sales and earnings,
the need for external financing for operations or capital
expenditures, the results of pending litigation against the
Company, the impact of future firearms control and environmental
legislation, and accounting estimates, any one or more of which
could cause actual results to differ materially from those
projected. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
made. The Company undertakes no obligation to publish revised
forward-looking statements to reflect events or circumstances after
the date such forward-looking statements are made or to reflect the
occurrence of subsequent unanticipated events.
STURM, RUGER & COMPANY, INC.
Balance Sheets
(Dollars in thousands, except per share
data)
December 31,
2011
2010
Assets Current
Assets Cash and cash equivalents $ 81,056 $ 5,132 Short-term
investments - 52,493 Trade receivables, net 42,225 31,565
Gross inventories 49,004 48,820 Less LIFO reserve (37,476 ) (37,448
) Less excess and obsolescence reserve
(1,311 ) (1,545 ) Net inventories
10,217
9,827 Deferred income taxes 5,776 4,780
Prepaid expenses and other current assets
6,968 1,427 Total
Current Assets 146,242 105,224 Property, Plant, and
Equipment 169,142 150,379 Less allowances for depreciation
(116,195 )
(107,458 ) Net property, plant and equipment
52,947 42,921
Deferred income taxes 32 5,443 Other assets
7,289 4,173
Total Assets $ 206,510
$ 157,761
STURM, RUGER & COMPANY, INC.
December 31,
2011
2010
Liabilities and
Stockholders’ Equity Current Liabilities Trade accounts payable
and accrued expenses $ 28,592 $ 16,492 Product liability 1,305 449
Employee compensation and benefits 14,882 10,923 Workers’
compensation 4,600 4,893 Income taxes payable
217 582 Total
Current Liabilities 49,596 33,339 Accrued pension liability
19,082 9,369 Product liability 441 573 Contingent
liabilities - - Stockholders’ Equity
Common stock, non-voting, par value
$1: Authorized shares – 50,000; none issued
Common stock, par value
$1: Authorized shares – 40,000,000 2011 –
23,382,566
issued, 19,083,132
outstanding 2010 – 23,003,285
issued, 18,837,251
outstanding
23,383
23,003
Additional paid-in capital 10,454 9,885 Retained earnings 168,981
137,125
Less: Treasury stock – at
cost 2011 – 4,299,434 shares 2010 –
4,166,034, shares
(37,884
)
(35,885
)
Accumulated other comprehensive loss
(27,543 ) (19,648 ) Total Stockholders’
Equity 137,391
114,480 Total Liabilities and Stockholders’
Equity $ 206,510 $
157,761 STURM, RUGER & COMPANY, INC.
Statements of Income
(In thousands, except per share data)
Year ended December 31,
2011
2010 2009
Net firearms sales $
324,200 $ 251,680 $ 266,566 Net castings sales
4,616 3,526
4,419 Total net sales 328,816 255,206
270,985 Cost of products sold 217,058 171,224 183,380
Gross profit
111,758 83,982
87,605 Operating Expenses:
Selling 28,691 23,517 21,822 General and administrative 20,970
16,652 20,387 Other operating (income) expenses, net
(319 ) 420
1,492 Total operating expenses 49,342
40,589 43,701
Operating income
62,416
43,393 43,904
Other income: Royalty income 873 429 490 Interest income 29 48 118
Interest expense (110 ) (143 ) (158 ) Other income, net
308 422
6 Total other income, net
1,100 756 456
Income before income
taxes 63,516
44,149 44,360
Income taxes 23,501 15,894 16,857
Net income $ 40,015
$ 28,255 $ 27,503
Basic Earnings Per Share $ 2.12
$ 1.48 $
1.44 Fully Diluted Earnings Per Share
$ 2.09 $ 1.46
$ 1.42 Cash Dividends Per Share
$ 0.43 $ 0.33
$ 0.31
STURM, RUGER &
COMPANY, INC. Statements of Cash Flows
(In thousands)
Year ended December 31,
2011
2010
2009
Operating Activities Net income $ 40,015 $ 28,255 $ 27,503
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation 12,148 9,207 7,300 Stock-based compensation 2,953
2,589 4,205 Slow moving inventory valuation adjustment (234 )
(1,057 ) 239 Loss (gain) on sale of assets (26 ) 22 (45 ) Deferred
income taxes 8,205 493 2,060 Changes in operating assets and
liabilities: Trade receivables (10,660 ) (6,516 ) 760 Inventories
(156 ) 888 2,042 Trade accounts payable and accrued expenses 11,807
3,932 2,150 Employee compensation and benefits 3,959 (1,967 ) 4,896
Product liability 724 (1,060 ) 339 Prepaid expenses, other assets
and other liabilities
(10,961
)
(1,333
)
(2,132
)
Income taxes payable (365 )
(962 ) (2,628 )
Cash provided by operating activities 57,409 32,491 46,689
Investing Activities Property, plant, and equipment additions
(22,135 ) (19,409 ) (13,819 ) Purchases of short-term investments
(122,978 ) (164,966 ) (77,281 ) Proceeds from sales or maturities
of short-term investments
175,471
163,214
45,098
Net proceeds from sale of assets 319
21
51 Cash provided by (used for) investing activities
30,677 (21,140 ) (45,951 ) Financing Activities Dividends
paid (8,159 ) (6,317 ) (5,816 )
Tax benefit from exercise of stock
options
3,855 1,923 1,442 Repurchase of common stock (1,999 ) (5,718 ) (14
) Payment of employee withholding tax related to share-based
compensation (5,859 ) (1,115 ) (30 ) Repayment of line of credit
- -
(1,000 ) Cash used for financing
activities (12,162 )
(11,227 ) (5,418 )
Increase (decrease) in cash and cash equivalents 75,924 124 (4,680
) Cash and cash equivalents at beginning of year
5,132 5,008
9,688 Cash and cash equivalents
at end of year $ 81,056
$ 5,132 $ 5,008
Sturm Ruger (NYSE:RGR)
Historical Stock Chart
From Apr 2024 to May 2024
Sturm Ruger (NYSE:RGR)
Historical Stock Chart
From May 2023 to May 2024