Sturm, Ruger & Company, Inc. reported net sales of $63.5 million and earnings per share of 30 cents, compared with sales of $42.5 million and earnings per share of 7 cents in the first quarter of 2008.


The company also announced that its Board of Directors declared a dividend of 8.6¢ per share for the first quarter, for shareholders of record as of May 15, 2009, payable on May 29, 2009.


Chief Executive Officer Michael O. Fifer made the following comments related to the first quarter of 2009:


Management for the company said the level of demand for products during the first quarter of 2009 has been unusually high, with more than 500,000 units ordered. Firearms sales grew 55.5% from the first quarter of 2008 and 8.7% from the fourth quarter of 2008, while firearms unit production grew 69.3% from the first quarter of 2008 and 25.6% from the fourth quarter of 2008. Backlog for the company grew to 458,900 units and $136.3 million at the end of the first quarter of 2009, from 175,900 units and $47.8 million at the end of 2008.”

Cash generated from operations during the first quarter of 2009 was $10.4 million. At the end of the first quarter of 2009, cash, cash equivalents and short-term investments totaled $33.9 million. Pre-LIFO working capital of $96.4 million, less the LIFO reserve of $44.1 million, resulted in working capital of $52.3 million and a current ratio of 2.9 to  1.The company said it has no debt.

During the first quarter of 2009, capital expenditures totaled $3.7 million. Management said they expect to invest approximately $12 million for capital expenditures during 2009.

Chief Executive Officer Michael O. Fifer issued a letter to Ruger shareholders, discussing the market conditions, manufacturing, operating results, and the first quarter dividend. Also, the company filed its Quarterly Report on Form 10-Q for the first quarter of 2009.


 

 





























































































































































































































Three Months Ended
April 4, 2009   March 29, 2008
 
Net firearms sales $62,227 $40,030
Net castings sales   1,302   2,476
Total net sales 63,529 42,506
 
Cost of products sold   44,003   31,851
Gross profit   19,526   10,655
 
Expenses:
Selling 5,445 4,388
General and administrative 4,147 3,941
Other operating expenses, net   500   –
Total operating expenses   10,092   8,329
 
Operating income   9,434   2,326
 
Other income:
Interest (expense) income , net (18) 163
Other (expense), net   (50)   (147)
Total other (expense) income, net   (68)   16
 
Income before income taxes 9,366 2,342
 
Income taxes   3,559   890
 
Net income   $5,807   $1,452
 
 
Earnings per share
Basic $0.30 $0.07
Diluted $0.30 $0.07
 
Average shares outstanding
Basic 19,045 20,572
Diluted 19,175 20,606