Sturm, Ruger & Company, Inc. reported net sales of $155.9 million
and fully diluted earnings of $1.20 per share, compared with net sales
of $112.3 million and fully diluted earnings of 79¢ per share in the
first quarter of 2012.
The Company also announced today that its Board of Directors declared a
dividend of 49¢ per share for the first quarter, for shareholders of
record as of May 10, 2013, payable on May 24, 2013. This dividend varies
every quarter because the Company pays a percent of earnings rather than
a fixed amount per share. This dividend is approximately 40% of net
income.
Chief Executive Officer Michael O. Fifer made the following observations
related to the Companys results:
Our earnings increased 53% from the first quarter of 2012, driven by
the 39% growth in sales and our ongoing focus on continuous
improvement in our operations.
New product introductions were a significant component of our sales
growth as new product sales represented $53.3 million or 35% of
firearm sales in the first quarter of 2013. New product introductions
in the first quarter of 2013 included the LC380 pistol and the SR45
pistol.
The estimated sell-through of our products from independent
distributors to retailers in the first quarter of 2013 increased 12%
from the first quarter of 2012. This estimated unit sell-through was
effectively limited to first quarter production because distributor
inventory totaled only 59,200 units at December 31, 2012. For
reference, at December 31, 2011, the distributor inventory totaled
135,600 units, allowing Q1 2012 sell-through to exceed Q1 2012
production by 22%. During the first quarter of 2013, National Instant
Criminal Background Check System (NICS) background checks (as
adjusted by the National Shooting Sports Foundation) increased 46%.
Cash generated from operations during the first quarter of 2013 was
$30.4 million. At March 30, 2013, our cash and cash equivalents
totaled $45.6 million. Our current ratio is 1.6 to 1 and we have no
debt.
In the first quarter of 2013, capital expenditures totaled $7.7
million, much of it related to new products and the expansion of
production capacity. We expect to invest approximately $30 million for
capital expenditures during 2013.
In the first quarter of 2013, the Company returned $7.8 million to its
shareholders through the payment of dividends.
At March 30, 2013, stockholders equity was $111.6 million, which
equates to a book value of $5.78 per share, of which $2.36 per share
was cash and equivalents.
STURM, RUGER & COMPANY, INC. |
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CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) |
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(In thousands, except per share data) |
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|
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Three Months Ended |
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|
March 30, 2013 |
March 31, 2012 |
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|
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|
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|
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Net firearms sales |
|
$ |
153,440 |
|
|
$ |
110,787 |
|
Net castings sales |
2,465 |
1,550 |
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Total net sales |
|
|
155,905 |
|
|
|
112,337 |
|
|
|
|
|
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Cost of products sold |
|
|
94,596 |
|
|
|
70,544 |
|
Gross profit |
61,309 |
41,793 |
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|
|
|
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Operating expenses: |
|
|
|
|
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Selling |
|
|
15,764 |
|
|
|
10,999 |
|
General and administrative |
8,443 |
6,378 |
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Total operating expenses |
24,207 |
17,377 |
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|
|
|
|
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Operating income |
37,102 |
24,416 |
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|
|
|
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Other income: |
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|
|
|
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Interest expense, net |
|
|
(16 |
) |
|
|
(23 |
) |
Other income, net |
265 |
178 |
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Total other income, net |
249 |
155 |
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|
|
|
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Income before income taxes |
|
|
37,351 |
|
|
|
24,571 |
|
|
|
|
|
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Income taxes |
13,633 |
9,091 |
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|
|
|
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Net income and comprehensive income |
$ |
23,718 |
$ |
15,480 |
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|
|
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Basic earnings per share |
$ |
1.23 |
$ |
0.81 |
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|
|
|
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Fully diluted earnings per share |
$ |
1.20 |
$ |
0.79 |
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|
|
|
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Cash dividends per share |
$ |
0.404 |
$ |
0.212 |