Sturm, Ruger & Company, Inc. reported net sales of $80.5 million and earnings of 57¢ per share for the third quarter, compared with net sales of $58.4 million and earnings of 32¢ per share in 2010.   

For the nine months ended October 1, 2011, net sales were $235.6 million and earnings were $1.56 per share. For the corresponding period in 2010, net sales were $191.1 million and earnings were $1.18 per share.   

The company also announced that its Board of Directors voted to declare a quarterly dividend of 14.1¢ per share on the company’s issued and outstanding shares of common stock. This cash dividend will be paid on November 28, 2011 to stockholders of record as of November 14, 2011.   

Chief Executive Officer Michael O. Fifer made the following comments related to the company’s results:

  • Our earnings increase of 78 percent was driven by the 38 percent increase in sales and our ongoing focus on continuous improvement in our operations.
  • Demand for our products outpaced the growth in overall industry demand as measured by the National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation) for both the third quarter and nine months ended October 1, 2011
    We believe the growth in estimated unit sell-through from distributors to retailers was greater than the growth in Adjusted NICS background checks in both periods due largely to the popularity of the new products introduced in 2011
  • New products represented $26.2 million or 33 percent of sales in the third quarter of 2011, and $75.0 million or 32 percent of sales in the nine months ended October 1, 2011.
  • Cash provided by operating activities was $43.0 million for the nine months ended October 1, 2011.
  • During the first nine months of 2011, capital expenditures totaled $12.2 million, much of it related to tooling and equipment for new products. We expect to invest approximately $15 million to $18 million for capital expenditures during 2011.
  • At October 1, 2011, our cash and equivalents and short-term investments totaled $79.3 million, an increase of $21.7 million since the beginning of the year. Our current ratio is 3.3 to 1 and we have no debt.
  • At October 1, 2011, stockholders’ equity was $136.9 million, which equates to a book value of $7.19 per share, of which $4.17 per share was cash and equivalents and short-term investments.
  • During the first nine months of 2011, we returned $7.5 million to our shareholders through:                                    
  1. The payment of $5.5 million of dividends, and
  2. The 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.
As of the end of the third quarter of 2011, $8.0 million remained available for future stock repurchases.

In May, the company announced the Ruger Million Gun Challenge to benefit the National Rifle Association. To the best of our knowledge, no firearm manufacturer has ever built and shipped one million units in one year, and Ruger is attempting to be the first company ever to do so. Supporting this goal, Ruger will 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. Ruger made its first Million Gun Challenge donation of $279,600 in July, and will donate an additional $276,500 in the fourth quarter.