ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
The Condensed Consolidated Balance Sheet at December
31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and
footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
The Condensed Consolidated Balance Sheet at December
31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all the information and
footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.
STURM, RUGER & COMPANY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
(Dollars in thousands, except per share)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States
for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include
all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete
financial statements.
In the opinion of management,
the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals,
considered necessary for a fair presentation of the results of the interim periods. Operating results for the three months ended April
1, 2023 may not be indicative of the results to be expected for the full year ending December 31, 2023. These financial statements have
been prepared on a basis that is substantially consistent with the accounting principles applied in the Company’s Annual Report
on Form 10-K for the year ended December 31, 2022.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
Organization:
Sturm, Ruger & Company, Inc.
(the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately
99% of sales are from firearms. Export sales typically represent no more than 5% of total sales, although they accounted for 7% of total
sales for the three month period ended April 1, 2023. Export sales accounted for 5% of total sales for the three month period ended April
2, 2022. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic.
The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting
market.
The Company also manufactures
investment castings made from steel alloys and metal injection molding (“MIM”) parts for internal use in its firearms and
for sale to unaffiliated, third-party customers. Approximately 1% of sales are from the castings segment.
Principles of Consolidation:
The consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been
eliminated.
Revenue Recognition:
The Company recognizes revenue
in accordance with the provisions of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC
606”). Substantially all product sales are sold FOB (free on board) shipping point. Customary payment terms are 2% 30 days, net
40 days. Generally, all performance obligations are satisfied when product is shipped and the customer takes ownership and assumes the
risk of loss. In some instances, sales include multiple performance obligations. The most common of these instances relates to sales promotion
programs under which downstream customers are entitled to receive no charge products based on their purchases of certain of the Company’s
products from the independent distributors. The fulfillment of these no charge products is the Company’s responsibility. In such
instances, the Company allocates the revenue of the promotional sales based on the estimated level of participation in the sales promotional
program and the timing of the shipment of all of the firearms included in the promotional program, including the no charge firearms. Revenue
is recognized proportionally as each performance obligation is satisfied, based on the relative customary price of each product. Customary
prices are generally determined based on the prices charged to the independent distributors. The net change in contract liabilities for
a given period is reported as an increase or decrease to sales.
Fair Value of Financial Instruments:
The carrying amounts of financial
instruments, including cash, short-term investments, accounts receivable, accounts payable and accrued liabilities, approximate fair value
due to the short-term maturity of these items.
The Company’s short-term
investments consist of United States Treasury instruments, which mature within one year, and investments in a bank-managed money market
fund that invests exclusively in United States Treasury obligations and is valued at the net asset value ("NAV") daily closing
price, as reported by the fund, based on the amortized cost of the fund’s securities. The NAV is used as a practical expedient to
estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment
for an amount different than the reported NAV.
Use of Estimates:
The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
NOTE 3 - REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS
The impact of ASC 606 on revenue
recognized during the three months ended April 1, 2023 and April 2, 2022 is as follows:
| |
Three Months Ended |
|
|
April 1, 2023 | |
April 2, 2022 |
| |
| | | |
| | |
Contract liabilities with customers at beginning of period | |
$ | 1,031 | | |
$ | — | |
| |
| | | |
| | |
Revenue deferred | |
| 201 | | |
| — | |
| |
| | | |
| | |
Revenue recognized | |
| (119 | ) | |
| — | |
| |
| | | |
| | |
Contract liabilities with customers at end of period | |
$ | 1,113 | | |
$ | — | |
As more fully described in the
Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s
sales promotion programs that include the future shipment of free products. The Company expects the deferred revenue from this contract
liability with customers to be recognized in the second quarter of 2023.
Practical Expedients and Exemptions
The Company has elected to account
for shipping and handling activities that occur after control of the related product transfers to the customer as fulfillment activities
that are recognized upon shipment of the goods.
NOTE 4 - INVENTORIES
Inventories are valued using the
last-in, first-out (LIFO) method. An actual valuation of inventory under the LIFO method can be made only at the end of each year based
on the inventory levels and costs existing at that time. Accordingly, interim LIFO calculations must necessarily be based on management's
estimates of expected year-end inventory levels and costs. Because these are subject to many factors beyond management's control, interim
results are subject to the final year-end LIFO inventory valuation.
During the three month period ended
April 1, 2023, inventory quantities were reduced. If this reduction remains through year-end, it will result in a liquidation of
LIFO inventory quantities carried at lower costs prevailing in prior years as compared with the current cost of purchases. Although
the effect of such a liquidation cannot be precisely quantified at the present time, management believes that if a LIFO liquidation occurs
in 2023, the impact may be material to the Company’s results of operations for the period but will not have a material impact on
the financial position of the Company.
Inventories consist of the following:
| |
April 1, 2023 | |
December 31, 2022 |
Inventory at FIFO | |
| | | |
| | |
Finished products | |
$ | 23,132 | | |
$ | 23,573 | |
Materials and work in process | |
| 104,801 | | |
| 105,721 | |
Gross inventories | |
| 127,933 | | |
| 129,294 | |
Less: LIFO reserve | |
| (61,016 | ) | |
| (59,489 | ) |
Less: excess and obsolescence reserve | |
| (4,962 | ) | |
| (4,812 | ) |
Net inventories | |
$ | 61,955 | | |
$ | 64,993 | |
NOTE 5 - LEASED ASSETS
The Company leases certain of
its real estate and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions
of the guidance of ASU 2016-02, Leases (Topic 842). The Company’s lease agreements generally do not require material variable
lease payments, residual value guarantees or restrictive covenants.
Under the provisions of ASU 2016-02,
the Company records right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below
presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of April 1, 2023:
| |
Balance Sheet Line Item | |
April 1, 2023 |
Right-of-use assets | |
Other assets | |
$ | 3,550 | |
| |
| |
| | |
Operating lease liabilities | |
| |
| | |
Current portion | |
Trade accounts payable and accrued expenses | |
$ | 650 | |
| |
| |
| | |
Noncurrent portion | |
Lease liabilities | |
| 2,900 | |
| |
| |
| | |
Total operating lease liabilities | |
| |
$ | 3,550 | |
The depreciable lives of right-of-use
assets are limited by the lease term and are amortized on a straight line basis over the life of the lease.
The Company’s leases generally
do not provide an implicit interest rate, and therefore the Company calculates an incremental borrowing rate to determine the present
value of its operating lease liabilities. The following table reconciles the undiscounted future minimum lease payments to the total operating
lease liabilities recognized on the Condensed Consolidated Balance Sheet as of April 1, 2023:
Remainder of 2023 | |
$ | 603 | |
2024 | |
| 808 | |
2025 | |
| 702 | |
2026 | |
| 705 | |
2027 | |
| 229 | |
Thereafter | |
| 1,120 | |
Total undiscounted future minimum lease payments | |
| 4,167 | |
Less: Difference between undiscounted lease payments & the present value of future lease payments | |
| (617 | ) |
Total operating lease liabilities | |
$ | 3,550 | |
Certain of the Company’s
lease agreements contain renewal options at the Company’s discretion. The Company does not recognize right-of-use assets or lease
liabilities for leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal
option at the inception of the lease or when a triggering event occurs. The Company’s weighted average remaining lease term for
operating leases as of April 1, 2023 is 8.6 years.
NOTE 6 - LINE OF CREDIT
On January 7, 2022, the Company
entered into a $40 million unsecured revolving line of credit agreement with a bank that expires January 7, 2025. Borrowings under this
new facility bear interest at either 1) the Bloomberg short-Term Bank Yield Index – 1 month plus 150 basis points, or 2) a fluctuating
rate per annum equal to the greater of (i) the Bank’s prime rate or (ii) the federal funds rate plus 50 basis points. The Company
is also charged one-quarter of a percent (0.25%) per year on the unused portion. At April 1, 2023, the Company was in compliance with
the terms and covenants of the credit facility and the line of credit was unused.
NOTE 7 - EMPLOYEE BENEFIT PLANS
The Company sponsors a 401(k)
plan that covers substantially all employees. The Company matches a certain portion of employee contributions using the safe harbor guidelines
contained in the Internal Revenue Code. Expenses related to these matching contributions totaled $1.7 million and $1.3 million for the
three months ended April 1, 2023 and April 2, 2022, respectively. The Company plans to contribute approximately $4.0 million to the plan
in matching employee contributions during the remainder of 2023.
In addition, the Company provided
supplemental discretionary contributions to the 401(k) plan totaling $2.2 million and $2.4 million for the three months ended April 1,
2023 and April 2, 2022, respectively. The Company plans to contribute approximately $5.0 million in supplemental contributions to the
plan during the remainder of 2023.
NOTE 8 - INCOME TAXES
The Company's 2023 and 2022 effective
tax rates differ from the statutory federal tax rate due principally to the availability of research and development tax credits, state
income taxes, and the nondeductibility of certain executive compensation. The Company’s effective income tax rate was 22.4% and
23.5% for the three months ended April 1, 2023 and April 1, 2022, respectively.
Income tax payments for the three
months ended April 1, 2023 and April 2, 2022 totaled $3.0 million and $3.1 million, respectively.
The Company files income tax returns
in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal
and state income tax examinations by tax authorities for years before 2017.
The Company does not believe it
has included any “uncertain tax positions” in its federal income tax return or any of the state income tax returns it is currently
filing. The Company has made an evaluation of the potential impact of additional state taxes being assessed by jurisdictions in which
the Company does not currently consider itself liable. The Company does not anticipate that such additional taxes, if any, would result
in a material change to its financial position.
NOTE 9 - EARNINGS PER SHARE
Set forth below is a reconciliation
of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated:
| |
Three Months Ended |
| |
April 1, 2023 | |
April 2, 2022 |
Numerator: | |
| |
|
Net income | |
$ | 14,350 | | |
$ | 30,232 | |
| |
| | | |
| | |
Denominator: | |
| | | |
| | |
Weighted average number of common shares outstanding – Basic | |
| 17,678,686 | | |
| 17,610,202 | |
| |
| | | |
| | |
Dilutive effect of options and restricted stock units outstanding under the Company’s employee compensation plans | |
| 109,967 | | |
| 196,255 | |
| |
| | | |
| | |
Weighted average number of common shares outstanding – Diluted | |
| 17,788,653 | | |
| 17,806,457 | |
The dilutive effect of outstanding
options and restricted stock units is calculated using the treasury stock method. There were no stock options that were anti-dilutive
and therefore not included in the diluted earnings per share calculation.
NOTE 10 - COMPENSATION PLANS
In May 2017, the Company’s
shareholders approved the 2017 Stock Incentive Plan (the “2017 SIP”) under which employees, independent contractors, and non-employee
directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may
not require the satisfaction of performance objectives. Vesting requirements are determined by the Compensation Committee of the Board
of Directors. The Company reserved 750,000 shares for issuance under the 2017 SIP, of which approximately 100,000 shares remain
available for future grants as of April 1, 2023.
Restricted Stock Units
The Company grants performance-based
and retention-based restricted stock units to senior employees. The vesting of the performance-based awards is dependent on the achievement
of corporate objectives established by the Compensation Committee of the Board of Directors and a three-year vesting period. The retention-based
awards are subject only to the three-year vesting period. There were no restricted stock units issued during the three months ended April
1, 2023.
Compensation costs related to
all outstanding restricted stock units recognized in the statements of income aggregated $1.1 million and $1.7 million for the three months
ended April 1, 2023 and April 2, 2022, respectively.
NOTE 11 - OPERATING SEGMENT INFORMATION
The Company has two reportable
segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a select number
of independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment
castings and metal injection molding parts.
Selected operating segment financial information follows:
(in thousands) | |
Three Months Ended |
| |
April 1,2023 | |
April 2,2022 |
Net Sales | |
| | | |
| | |
Firearms | |
$ | 148,893 | | |
$ | 165,933 | |
Castings | |
| | | |
| | |
Unaffiliated | |
| 560 | | |
| 642 | |
Intersegment | |
| 8,367 | | |
| 4,813 | |
| |
| 8,927 | | |
| 5,455 | |
Eliminations | |
| (8,367 | ) | |
| (4,813 | ) |
| |
$ | 149,453 | | |
$ | 166,575 | |
| |
| | | |
| | |
Income (Loss) Before Income Taxes | |
| | | |
| | |
Firearms | |
$ | 18,353 | | |
$ | 39,695 | |
Castings | |
| (1,107 | ) | |
| (383 | ) |
Corporate | |
| 1,246 | | |
| 207 | |
| |
$ | 18,492 | | |
$ | 39,519 | |
| |
| | | |
| | |
Depreciation | |
| | | |
| | |
Firearms | |
$ | 5,676 | | |
$ | 5,810 | |
Castings | |
| 553 | | |
| 578 | |
| |
$ | 6,229 | | |
$ | 6,388 | |
| |
| | | |
| | |
Capital Expenditures | |
| | | |
| | |
Firearms | |
$ | 1,649 | | |
$ | 10,307 | |
Castings | |
| 3 | | |
| 574 | |
| |
$ | 1,652 | | |
$ | 10,881 | |
| |
April 1, 2023 | |
December 31, 2022 |
Identifiable Assets | |
| | | |
| | |
Firearms | |
$ | 217,193 | | |
$ | 223,301 | |
Castings | |
| 9,866 | | |
| 11,910 | |
Corporate | |
| 162,038 | | |
| 249,552 | |
| |
$ | 389,097 | | |
$ | 484,763 | |
Goodwill | |
| | | |
| | |
Firearms | |
$ | 3,055 | | |
$ | 3,055 | |
Castings | |
| 209 | | |
| 209 | |
| |
$ | 3,264 | | |
$ | 3,264 | |
NOTE 12 - RELATED PARTY TRANSACTIONS
The Company contracts with the
National Rifle Association (“NRA”) for some of its promotional and advertising activities. Payments made to the NRA totaled
$0.1 million in each of the three months ended April 1, 2023 and April 1, 2022. One of the Company’s Directors also serves as a
Director on the Board of the NRA.
The Company is a member of the
National Shooting Sports Foundation (“NSSF”), the firearm industry trade association. Payments made to the NSSF totaled
$0.1 million in each of the three months ended April 1, 2023 and April 2, 2022. One of the Company’s Directors also serves
on the Board of the NSSF.
NOTE 13 - CONTINGENT LIABILITIES
As of April 1, 2023, the Company
was a defendant in eight (8) lawsuits and is aware of certain other such claims. The lawsuits fall into three categories: municipal litigation,
negligence, and unfair trade practices. Each is discussed in turn below.
Municipal Litigation
Municipal litigation generally
includes those cases brought by cities or other governmental entities against firearms manufacturers, distributors and retailers seeking
to recover damages allegedly arising out of the misuse of firearms by third parties. There are four lawsuits of this type: the City
of Gary, filed in Indiana State Court in 1999: Estados Unidos Mexicanos v. Smith & Wesson, et al., filed in August 2021;
The City of Buffalo, filed in the Supreme Court of the State of New York for Erie County on December 20, 2022; and The City
of Rochester, filed in the Supreme Court for the State of New York for Monroe County on December 21, 2022, each of which is described
in more detail below.
The City of Gary Complaint
seeks damages, among other things, for the costs of medical care, police and emergency services, public health services, and other services
as well as punitive damages. In addition, nuisance abatement and/or injunctive relief is sought to change the design, manufacture, marketing
and distribution practices of the various defendants. The suit alleges, among other claims, negligence in the design of products, public
nuisance, negligent distribution and marketing, negligence per se and deceptive advertising. The case does not allege a specific injury
to a specific individual as a result of the misuse or use of any of the Company's products. After a long
procedural history, during the quarter ended April 3, 2021, the City initiated discovery and
the manufacturer defendants reciprocated. Discovery is ongoing.
Estados Unidos Mexicanos v.
Smith & Wesson Brands, Inc., et al. was filed by the Country of Mexico and names seven defendants, mostly U.S.-based firearms
manufacturers, including the Company. The Complaint advances a variety of legal theories including negligence, public nuisance, unjust
enrichment, restitution, and others. Plaintiff essentially alleges that Defendants design, manufacture, distribute, market and sell firearms
in a way that they know results in the illegal trafficking of firearms into Mexico, where they are used by Mexican drug cartels for criminal
activities. Plaintiff seeks injunctive relief and monetary damages. On November 22, 2021, defendants filed a joint Rule 12(b)(6) motion
to dismiss the Mexican Government’s complaint. On September 30, 2022, the court entered an order granting defendants’ motion.
On October 26, 2022, plaintiff filed a Notice of Appeal and the matter is being briefed.
On December 20, 2022, the City
of Buffalo, New York filed a lawsuit captioned The City of Buffalo v. Smith & Wesson Brands, Inc., et al. in the New York State
Supreme Court for Erie County, New York. The suit names a number of firearm manufacturers, distributors, and retailers as defendants,
including the Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York General Business
Law, as well as common law public nuisance. Generally, plaintiff alleges that the criminal misuse of firearms in the City of Buffalo is
the result of the manufacturing, sales, marketing, and distribution practices of the defendants. Defendants timely removed the matter
to the U.S. District Court for the Western District of New York. The matter was transferred to the New York Supreme Court for Monroe County
and consolidated with The City of Rochester v. Smith & Wesson Brands, Inc., et al., discussed below.
On December 21, 2022, the City
of Rochester, New York filed a lawsuit captioned The City of Rochester v. Smith & Wesson Brands, Inc., et al. in the New York
State Supreme Court for Monroe County, New York. The allegations essentially mirror those in The City of Buffalo, discussed in
the preceding paragraph. Defendants timely removed the matter to the U.S. District Court for the Western District of New York and the
matter was consolidated with The City of Buffalo.
Defendants moved to stay the consolidated
Buffalo/Rochester case pending a decision by the Second Circuit Court of Appeals in National Shooting Sports Foundation, Inc.
et al. v. James, which challenges the constitutionality of the recently enacted N.Y. Gen. Bus.
Law §§ 898-a–e. The motion is pending.
Negligence
Rossiter v. Sturm, Ruger, et
al. is a lawsuit arising out of a slip and fall accident by a contract security officer in December 2019. The Complaint was filed
in the Superior Court for Sullivan County, New Hampshire on December 13, 2022 and names Pine Hill Construction, a snow removal contractor,
as a co-defendant. The Company has tendered the defense of this matter to its insurance carrier and is assisting as required.
The Company was named in two purported
class action lawsuits arising out of a data breach at Freestyle Solutions, Inc., the vendor who hosted the Company’s ShopRuger.com
website at the time of the breach. Jones v. Sturm, Ruger & Co., was filed in the U.S. District Court for Connecticut on October
4, 2022 and Copeland v. Sturm, Ruger & Company, et al. was filed in the U.S. District Court for New Jersey on October 27, 2022.
Copeland also named Freestyle Solutions, Inc. as a defendant. By agreement of the parties, Copeland was dismissed, without
prejudice, and consolidated with Jones in the pending Connecticut case. On January 20, 2023, five plaintiffs filed an Amended Complaint
naming the Company and Freestyle Software, Inc. as defendants. The Complaint alleges causes of action for negligence, breach of implied
warranties, and unjust enrichment. The Company filed a Motion to Dismiss on a variety of grounds, and a briefing schedule was entered
by the court.
Unfair Trade Practices
Estate of Suzanne Fountain
v. Sturm, Ruger & Co., Inc., arises out of the criminal shootings at the King Soopers supermarket in Boulder, Colorado on March
22, 2021. On that date, plaintiff’s decedent, Suzanne Fountain, was murdered by 21-year-old Ahmad
Al Aliwi Al-Issa. The Complaint alleges that the Company’s advertising and marketing of the Ruger AR-556 pistol involved in the
criminal shootings violate the Connecticut Unfair Trade Practices Act and were a substantial factor in bringing about the wrongful death
of Suzanne Fountain. On April 24, 2023, the Connecticut Superior Court in Stamford sua sponte transferred the case to the Connecticut
Superior Court in Bridgeport.
Estate of Neven Stanisic et
al. v. Sturm, Ruger & Co., Inc., was filed on behalf of five plaintiffs. Like Estate of Suzanne Fountain, the claims arise
from the criminal shootings at the King Soopers supermarket in Boulder, Colorado on March 22, 2021. Plaintiffs’ decedents were
murdered by Ahmad Al Aliwi Al-Issa and plaintiffs allege that the Company’s
advertising and marketing of the Ruger AR-556 pistol involved in the criminal shootings violate the Connecticut Unfair Trade Practices
Act and were a substantial factor in causing the wrongful death of plaintiffs’ decedents.
Summary of Claimed Damages and Explanation of Product Liability Accruals
Punitive damages, as well as compensatory
damages, are demanded in certain of the lawsuits and claims. In many instances, the plaintiff does not seek a specified amount of money,
though aggregate amounts ultimately sought may exceed product liability accruals and applicable insurance coverage. For product liability
claims made after July 10, 2000, coverage is provided on an annual basis for losses exceeding $5 million per claim, or an aggregate maximum
loss of $10 million annually, except for certain new claims which might be brought by governments or municipalities after July 10, 2000,
which are excluded from coverage.
The Company management monitors
the status of known claims and the product liability accrual, which includes amounts for asserted and unasserted claims. While it is not
possible to forecast the outcome of litigation or the timing of costs, in the opinion of management, after consultation with special and
corporate counsel, it is not probable and is unlikely that litigation, including punitive damage claims, will have a material adverse
effect on the financial position of the Company, but may have a material impact on the Company's financial results for a particular period.
Product liability claim payments
are made when appropriate if, as, and when claimants and the Company reach agreement upon an amount to finally resolve all claims. Legal
costs are paid as lawsuits and claims develop, the timing of which may vary greatly from case to case. A time schedule cannot be determined
in advance with any reliability concerning when payments will be made in any given case.
Provision is made for product
liability claims based upon many factors related to the severity of the alleged injury and potential liability exposure, based upon prior
claim experience. Because the Company's experience in defending these lawsuits and claims is that unfavorable outcomes are typically not
probable or estimable, only in rare cases is an accrual established for such costs.
In most cases, an accrual is established
only for estimated legal defense costs. Product liability accruals are periodically reviewed to reflect then-current estimates of possible
liabilities and expenses incurred to date and reasonably anticipated in the future. Threatened product liability claims are reflected
in the Company's product liability accrual on the same basis as actual claims; i.e., an accrual is made for reasonably anticipated possible
liability and claims handling expenses on an ongoing basis.
A range of reasonably possible
losses relating to unfavorable outcomes cannot be made. However, in product liability cases in which a dollar amount of damages is claimed,
the amount of damages claimed, which totaled $1.1 million at December 31, 2021, is set forth as an indication of possible maximum liability
the Company might be required to incur in these cases (regardless of the likelihood or reasonable probability of any or all of this amount
being awarded to claimants) as a result of adverse judgments that are sustained on appeal. At December 31, 2022, the
total amount claimed specifically in these cases was de minimis.
NOTE 14 - SUBSEQUENT EVENTS
On April 28, 2023,
the Board of Directors authorized a dividend of 32¢ per share, for shareholders of record as of May 15, 2023, payable on May 31,
2023.
The Company has evaluated
events and transactions occurring subsequent to April 1, 2023 and determined that there were no other unreported events or transactions
that would have a material impact on the Company’s results of operations or financial position.
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Company Overview
Sturm, Ruger & Company, Inc.
(the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately
99% of sales are from firearms. Export sales typically represent no more than 5% of total sales, although they did account for 7% of total
sales for the three month period ended April 1, 2023. Export sales accounted for 5% of total sales for the three month period ended April
2, 2022. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic.
The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting
market.
The Company also manufactures
investment castings made from steel alloys and metal injection molding (“MIM”) parts for internal use in its firearms and
for sale to unaffiliated, third-party customers. Less than 1% of sales are from the castings segment.
Orders for many models of firearms
from the independent distributors tend to be stronger in the first quarter of the year and weaker in the third quarter of the year. This
is due in part to the timing of the distributor show season, which occurs during the first quarter.
Impact of Covid-19
The global outbreak of the coronavirus
disease 2019 (“COVID-19”) was declared a pandemic by the World Health Organization and a national emergency by the U.S. Government
in March 2020. The COVID-19 pandemic created significant uncertainty and adversely impacted many industries throughout the global economy.
During the three month period ended April 1, 2023, the Company did not experience a significant adverse impact on its business from COVID-19
or related government restrictions. The impact of the COVID-19 pandemic is fluid and continues to evolve, and, therefore, the Company
cannot predict the extent to which its business, results of operations, financial condition, or cash flows will ultimately be impacted.
Management continues to monitor and assess the situation and to prepare for potential implications for the Company’s business, supply
chain and customer demand.
The Company has taken many proactive
steps to maintain the health and safety of its employees and to mitigate the impact on its business and believes it remains well positioned
to continue to manage through this global crisis. At the end of the first quarter of 2023, the Company was debt-free, and had cash and
short-term investments totaling $130 million.
The ultimate impact of COVID-19
on the Company’s business, results of operations, financial condition and cash flows is dependent on future developments, including
the duration of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted
at this time.
Results of Operations
Demand
The estimated unit sell-through
of the Company’s products from the independent distributors to retailers decreased 5% in the first quarter of 2023 compared to the
prior year period. For the same period, NICS background checks (as adjusted by the National Shooting Sports Foundation (“NSSF”))
decreased 1%. Estimated sell-through from the independent distributors to retailers and total adjusted NICS background checks for the
trailing five quarters follow:
| |
2023 | |
2022 |
| |
Q1 | |
Q4 | |
Q3 | |
Q2 | |
Q1 |
| |
| |
| |
| |
| |
|
Estimated Units Sold from Distributors to Retailers (1) | |
| 391,500 | | |
| 397,800 | | |
| 343,500 | | |
| 354,300 | | |
| 411,200 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total adjusted NICS Background Checks (thousands) (2) | |
| 4,168 | | |
| 4,531 | | |
| 3,764 | | |
| 3,917 | | |
| 4,213 | |
| (1) | The estimates for each period were calculated by taking the beginning inventory at the distributors, plus
shipments from the Company to distributors during the period, less the ending inventory at distributors. These estimates are only a proxy
for actual market demand as they: |
| ● | Rely on data provided by independent distributors that are not verified by the Company, |
| ● | Do not consider potential timing issues within the distribution channel, including goods-in-transit, and |
| ● | Do not consider fluctuations in inventory at retail. |
| (2) | NICS background checks are performed when the ownership of most firearms, either new or used, is transferred
by a Federal Firearms Licensee. NICS background checks are also performed for permit applications, permit renewals, and other administrative
reasons. |
The adjusted NICS data
presented above was derived by the NSSF by subtracting out NICS checks that are not directly related to the sale of a firearm, including
checks used for concealed carry (“CCW”) permit application checks as well as checks on active CCW permit databases. The adjusted
NICS checks represent less than half of the total NICS checks.
Adjusted NICS data can be impacted by changes
in state laws and regulations and any directives and interpretations issued by governmental agencies.
Orders Received and Ending Backlog
The Company uses the estimated
unit sell-through of its products from the independent distributors to retailers, along with inventory levels at the independent distributors
and at the Company, as the key metrics for planning production levels. The Company generally does not use the orders received or ending
backlog for planning production levels.
The units ordered, value of orders
received, average sales price of units ordered, and ending backlog for the trailing five quarters are as follows (dollars in millions,
except average sales price):
(All amounts shown are net of Federal Excise Tax of 10% for handguns and
11% for long guns.)
| |
2023 | |
2022 |
| |
Q1 | |
Q4 | |
Q3 | |
Q2 | |
Q1 |
| |
| |
| |
| |
| |
|
Units Ordered | |
| 408,000 | | |
| 156,000 | | |
| 295,600 | | |
| 250,600 | | |
| 381,600 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Orders Received | |
$ | 156.2 | | |
$ | 81.0 | | |
$ | 124.3 | | |
$ | 98.9 | | |
$ | 147.0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Sales Price of Units Ordered | |
$ | 383 | | |
$ | 519 | | |
$ | 421 | | |
$ | 395 | | |
$ | 385 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Ending Backlog | |
$ | 327.3 | | |
$ | 314.4 | | |
$ | 377.6 | | |
$ | 389.6 | | |
$ | 420.5 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Sales Price of Ending Unit Backlog | |
$ | 488 | | |
$ | 486 | | |
$ | 427 | | |
$ | 405 | | |
$ | 384 | |
Production
The Company reviews the estimated
sell-through from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company,
semi-monthly to plan production levels. The Company’s overall production in the first quarter of 2023 decreased by 27% from the
first quarter of 2022.
Summary Unit Data
Firearms unit data for the trailing
five quarters are as follows (dollar amounts shown are net of Federal Excise Tax of 10% for handguns and 11% for long guns):
| |
2023 | |
2022 |
| |
Q1 | |
Q4 | |
Q3 | |
Q2 | |
Q1 |
| |
| |
| |
| |
| |
|
Units Ordered | |
| 408,000 | | |
| 156,000 | | |
| 295,600 | | |
| 250,600 | | |
| 381,600 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Units Produced | |
| 381,000 | | |
| 397,300 | | |
| 382,800 | | |
| 431,800 | | |
| 521,300 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Units Shipped | |
| 384,900 | | |
| 393,100 | | |
| 373,800 | | |
| 382,600 | | |
| 491,500 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Average Sales Price of Units Shipped | |
$ | 387 | | |
$ | 378 | | |
$ | 371 | | |
$ | 366 | | |
$ | 338 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Ending Unit Backlog | |
| 670,400 | | |
| 647,300 | | |
| 884,400 | | |
| 962,600 | | |
| 1,094,600 | |
Inventories
During the first quarter of 2023,
the Company’s finished goods inventory decreased by 3,900 units and distributor inventories of the Company’s products decreased
by 6,600 units.
Inventory data for the trailing five quarters follows:
| |
2023 | |
2022 |
| |
Q1 | |
Q4 | |
Q3 | |
Q2 | |
Q1 |
| |
| |
| |
| |
| |
|
Units – Company Inventory | |
| 108,900 | | |
| 112,800 | | |
| 108,600 | | |
| 99,700 | | |
| 50,400 | |
Units – Distributor Inventory (1) | |
| 291,800 | | |
| 298,400 | | |
| 303,100 | | |
| 272,800 | | |
| 244,600 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Total Inventory (2) | |
| 400,700 | | |
| 411,200 | | |
| 411,700 | | |
| 372,500 | | |
| 295,000 | |
| | |
| (1) | Distributor ending inventory is provided by the Company’s independent distributors. These numbers
do not include goods-in-transit inventory that has been shipped from the Company but not yet received by the distributors. |
| (2) | This total does not include inventory at retailers. The Company does not
have access to data on retailer inventories of the Company’s products. |
Net Sales, Cost of Products Sold, and Gross Profit
Net sales, cost of products sold,
and gross profit data for the three months ended (dollars in millions):
| |
April 1, 2023 | |
April 2, 2022 | |
Change | |
% Change |
Net firearms sales | |
$ | 148.9 | | |
$ | 166.0 | | |
$ | (17.1 | ) | |
| (10.3% | ) |
| |
| | | |
| | | |
| | | |
| | |
Net castings sales | |
| 0.6 | | |
| 0.6 | | |
| (0.0 | ) | |
| (12.8% | ) |
| |
| | | |
| | | |
| | | |
| | |
Total net sales | |
| 149.5 | | |
| 166.6 | | |
| (17.1 | ) | |
| (10.3% | ) |
| |
| | | |
| | | |
| | | |
| | |
Cost of products sold | |
| 111.0 | | |
| 108.5 | | |
| 2.5 | | |
| 2.3% | |
| |
| | | |
| | | |
| | | |
| | |
Gross profit | |
$ | 38.5 | | |
$ | 58.1 | | |
$ | (19.6 | ) | |
| (33.8% | ) |
| |
| | | |
| | | |
| | | |
| | |
Gross margin | |
| 25.8% | | |
| 34.9% | | |
| (9.1% | ) | |
| (26.1% | ) |
The decrease in total consolidated
net sales and net firearms sales for the three months ended April 1, 2023 is attributable to decreased consumer demand for firearms. Sales
of new products, including the Security-380 pistol, MAX-9 pistol, LCP MAX pistol, Super Wrangler revolver, Marlin 1895 lever-action rifles,
LC Carbine, and Small-Frame Autoloading Rifle represented $30.0 million or 21% of firearm sales in the first quarter of 2023. New product
sales include only major new products that were introduced in the past two years.
The decreased gross profit for
the three months ended April 1, 2023 is attributable to the decrease in sales and inflationary cost increases in materials, commodities,
services, energy, fuel and transportation, as well as increased promotional costs.
The decrease in gross margin for
the three months ended April 1, 2023 is attributable to unfavorable deleveraging of fixed costs, including depreciation, engineering and
other indirect labor, resulting from decreased sales and production and decreased labor efficiencies, as well as a product mix shift
toward products with relatively lower margins, for many of which the Company had significantly underserved the market demand since early
in 2020. In addition to the unfavorable deleveraging of fixed costs and the shift in product mix, the aforementioned promotional and inflationary
cost increases, partially offset by increased pricing, resulted in lower margins.
Selling, General and Administrative Expenses
Selling, general and administrative
expenses were $21.5 million for the three months ended April 1, 2023, an increase of $2.1 million or 10.8% from $19.4 million in the comparable
prior year period. As a percentage of sales, selling, general, and administrative expenses increased to 14.4% in the three months ended
April 1, 2023 from 11.6% in the prior year period.
The increase in these expenses
for the three months ended April 1, 2023 was primarily attributable to the resumption of trade show participation costs, travel expenditures,
and advertising that had been deferred in 2022 due to COVID-19 restrictions, partially offset by decreased sales volume and decreased
incentive compensation expenses.
Other income, net
Other income, net of $1.5 million
for the three months ended April 1, 2023, increased from $0.8 million for the three months ended April 2, 2022 as the result of increases
in interest income, partially offset by decreased royalty and miscellaneous income.
Income Taxes and Net Income
The Company's 2023 and 2022 effective
tax rates differ from the statutory federal tax rate due principally to research and development tax credits, state income taxes and the
nondeductibility of certain executive compensation. The Company’s effective income tax rate was 22.4% for the three months ended
April 1, 2023. The Company’s effective income tax rate was 23.5% for the three months ended April 2, 2022.
As a result of the foregoing factors,
consolidated net income was $14.4 million for the three months ended April 1, 2023. This represents a decrease of 52.5% from $30.2 million
in the comparable prior year period.
Non-GAAP Financial Measures
In an effort to provide investors
with additional information regarding its financial results, the Company refers to various United States generally accepted accounting
principles (“GAAP”) financial measures and two non-GAAP financial measures, EBITDA and EBITDA margin, which management believes
provides useful information to investors. These non-GAAP financial measures may not be comparable to similarly titled financial measures
being disclosed by other companies. In addition, the Company believes that the non-GAAP financial measures should be considered in addition
to, and not in lieu of, GAAP financial measures. The Company believes that EBITDA and EBITDA margin are useful to understanding its operating
results and the ongoing performance of its underlying business, as EBITDA provides information on the Company’s ability to meet
its capital expenditure and working capital requirements, and is also an indicator of profitability. The Company believes that this reporting
provides better transparency and comparability to its operating results. The Company uses both GAAP and non-GAAP financial measures to
evaluate the Company’s financial performance.
EBITDA is defined as earnings
before interest, taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income
tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting
the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company calculates EBITDA margin
by dividing EBITDA by total net sales.
EBITDA was $23.8 million for the
three months ended April 1, 2023, a decrease of 48.5% from $46.3 million in the comparable prior year period.
Non-GAAP Reconciliation – EBITDA
EBITDA
(Unaudited, dollars in thousands)
| |
Three Months Ended |
| |
April 1, 2023 | |
April 2, 2022 |
| |
|
|
Net income | |
$ | 14,350 | | |
$ | 30,232 | |
| |
| | | |
| | |
Income tax expense | |
| 4,142 | | |
| 9,287 | |
Depreciation and amortization expense | |
| 6,536 | | |
| 6,755 | |
Interest income | |
| (1,214 | ) | |
| (31 | ) |
Interest expense | |
| 25 | | |
| 91 | |
EBITDA | |
$ | 23,839 | | |
$ | 46,334 | |
EBITDA margin | |
| 16.0% | | |
| 27.8% | |
Financial Condition
Liquidity and Capital Resources
At the end of the first quarter
of 2023, the Company’s cash and short-term investments totaled $130.1 million. Pre-LIFO working capital of $263.4 million, less
the LIFO reserve of $61.0 million, resulted in working capital of $202.4 million and a current ratio of 4.3 to 1.
Operations
Cash provided by operating activities
was $5.3 million for the three months ended April 1, 2023, compared to $18.8 million for the comparable prior year period. The decrease
in cash provided in the three months ended April 1, 2023 is primarily attributable to the decrease in net income and reduced income taxes
payable, partially offset by the decrease in inventory, in the three months ended April 1, 2023.
Third parties supply the Company
with various raw materials for its firearms and castings, such as steel, fabricated steel components, walnut, birch, beech, maple and
laminated lumber for rifle stocks, wax, ceramic material, metal alloys, various synthetic products and other component parts. In the three
months ended April 1, 2023, the Company’s manufacturing operations were impacted by limited deliveries of raw materials. A limited
supply of these materials in the marketplace can result in increases to purchase prices and adversely affect production levels. If market
conditions result in a significant prolonged inflation of certain prices or if adequate quantities of raw materials cannot be obtained,
the Company’s manufacturing processes could be interrupted and the Company’s financial condition or results of operations
could be materially adversely affected.
Investing and Financing
Capital expenditures for the three
months ended April 1, 2023 totaled $1.7 million, a decrease from $10.9 million in the comparable prior year period. In 2023, the Company
expects capital expenditures related to new product introductions and upgrades to our manufacturing equipment and facilities to total
approximately $20 million. Due to market conditions and business circumstances, actual capital expenditures could vary significantly from
the projected amount. The Company finances, and intends to continue to finance, all of these activities with funds provided by operations
and current cash.
Dividends of $95.8 million were
paid during the three months ended April 1, 2023. This included $88.3 million paid in January 2023 for a special dividend declared by
the Board of Directors in November 2022. The Company has financed its dividends with cash provided by operations and current cash. The
quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. The Company’s
practice is to pay a dividend of approximately 40% of net income.
On April 28, 2023, the
Company’s Board of Directors authorized a dividend of 32¢ per share to shareholders of record on May 15, 2023, payable on
May 31, 2023. The payment of future dividends depends on many factors, including internal estimates of future performance,
then-current cash and short-term investments, and the Company’s need for funds.
As of April 1, 2023, the Company
had $97.0 million of United States Treasury instruments which mature within one year. The Company also invests available cash in a bank-managed
money market fund that invests exclusively in United States Treasury instruments which mature within one year. At April 1, 2023, the Company’s
investment in this money market fund totaled $25.0 million.
The Company did not purchase any
shares of its common stock during the three months ended April 1, 2023. As of April 1, 2023, $86.6 million remained authorized for future
stock repurchases.
Based on its unencumbered assets,
the Company believes it has the ability to raise cash through the issuance of short-term or long-term debt. The Company’s unsecured
$40 million credit facility, which expires on January 7, 2025, was unused at April 1, 2023.
Other Operational Matters
In the normal course of its manufacturing
operations, the Company is subject to occasional governmental proceedings and orders pertaining to workplace safety, firearms serial number
tracking and control, waste disposal, air emissions and water discharges into the environment. The Company believes that it is generally
in compliance with applicable Bureau of Alcohol, Tobacco, Firearms & Explosives, environmental, and safety regulations and the outcome
of any proceedings or orders will not have a material adverse effect on the financial position or results of operations of the Company.
If these regulations become more stringent in the future and the Company is not able to comply with them, such noncompliance could have
a material adverse impact on the Company.
The Company has 15 independent
distributors that service the domestic commercial market. Additionally, the Company has 45 and 25 distributors servicing the export and
law enforcement markets, respectively.
The Company self-insures a significant
amount of its product liability, workers’ compensation, medical, and other insurance. It also carries significant deductible amounts
on various insurance policies.
The Company expects to realize
its deferred tax assets through tax deductions against future taxable income.
Adjustments to Critical Accounting Policies
The Company has not made any adjustments
to its critical accounting estimates and assumptions described in the Company’s 2022 Annual Report on Form 10-K filed on February
22, 2023, or the judgments affecting the application of those estimates and assumptions.
Forward-Looking Statements and Projections
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, the impact of COVID-19, 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.
| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
The interest rate market risk
implicit to the Company at any given time is typically low, as the Company does not have significant exposure to changing interest rates
on invested cash. There has been no material change in the Company’s exposure to interest rate risks during the three months ended
April 1, 2023.
| ITEM 4. | CONTROLS AND PROCEDURES |
Evaluation of Disclosure Controls and Procedures
The Company’s management,
with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of
the Company’s disclosure controls and procedures (the “Disclosure Controls and Procedures”), as such term is defined
in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of April 1,
2023.
Based on that evaluation, the
Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of April 1, 2023, such Disclosure Controls
and Procedures are effective to ensure that information required to be disclosed in the Company’s periodic reports filed under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s
rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive
Officer and Chief Financial Officer or persons performing similar functions, as appropriate, to allow timely decisions regarding disclosure.
The Company’s Chief Executive
Officer and Chief Financial Officer have further concluded that, as of April 1, 2023, there have been no material changes in the Company’s
internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended
April 1, 2023 that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.
The Company has not experienced any material impact to its internal controls over financial reporting as a result of the COVID-19 pandemic.
The effectiveness of any system
of internal controls and procedures is subject to certain limitations, and, as a result, there can be no assurance that the Disclosure
Controls and Procedures will detect all errors or fraud. An internal control system, no matter how well conceived and operated, can provide
only reasonable, not absolute, assurance that the objectives of the internal control system will be attained.
PART II. |
OTHER INFORMATION |
The nature of the legal
proceedings against the Company is discussed at Note 13 to the
financial statements, which are included in this Form 10-Q.
The
Company has reported all cases instituted against it through December 31, 2022, and the results of
those cases, where terminated, to the SEC on its previous Form 10-Q and 10-K reports, to which reference is hereby made.
There were two lawsuits formally instituted against the Company during
the three months ending April 1, 2023, which are as follows (each of which is described above in Note 13 to the unaudited condensed consolidated
financial statements).
Estate of Suzanne Fountain v. Sturm, Ruger & Co., Inc., filed
in Connecticut Superior Court, Stamford, Connecticut on March 14, 2023.
Estate of Neven Stanisic et al. v. Sturm, Ruger & Co., Inc., filed
in Connecticut Superior Court, Stamford, Connecticut on April 5, 2023.
During the three months ending April 1, 2023, the previously reported
case of Pegg v. Sturm, Ruger & Co., Inc. et al., was dismissed with prejudice.
During the three months ended
April 1, 2023, there were no material changes in the Company’s risk factors from the information provided in Item 1A. Risk Factors
included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Not applicable
| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
Not applicable
| ITEM 4. | MINE SAFETY DISCLOSURES |
Not applicable
None
| 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its
XBRL tags are embedded within the Inline XBRL document |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
STURM, RUGER & COMPANY, INC.
FORM 10-Q FOR THE THREE MONTHS ENDED APRIL 1, 2023
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
STURM, RUGER & COMPANY, INC. |
|
|
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|
|
|
|
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Date: May 3, 2023 |
|
S/THOMAS A. DINEEN |
|
|
Thomas A. Dineen
Principal Financial Officer,
Principal Accounting Officer,
Senior Vice President, Treasurer and Chief
Financial Officer |