Sturm, Ruger & Company Inc. reported earnings slid 8.6 percent in the first quarter as sales slumped 13.1 percent.

Net earnings reached $13.0 million, or 74 cents a share, against $14.3 million, or 81 cents, a year ago. Revenues fell to $112.9 million from $129.9 million.

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 percent and 9 percent, respectively, from the first quarter of 2018 due to a decline in overall market demand, as evidenced by the 8 percent 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 percent 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, cash and short-term investments totaled $135 million. Ruger’s current ratio is 4.1 to 1 and the company has no debt.
  • In the first quarter of 2019, capital expenditures totaled $2.7 million. The company expects 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.