Sturm, Ruger & Company, Inc. said net sales for the third quarter of 2009 were $71.2 million and earnings of 37 cents per share, compared with sales of $41.8 million and earnings of 2 cents per share in the third quarter of 2008.


For the nine months ended Oct. 3, 2009, net sales were $207.1 million and earnings were $1.13 per share. For the corresponding period in 2008, net sales were $123.0 million and earnings were 14 cents per share.


The company also announced that its Board of Directors declared a dividend of 9.6 cents per share for the third quarter, for shareholders of record as of November 13, 2009, payable on Nov. 30, 2009. The amount of the dividend was based on a percentage of Operating Profit after adjustment for certain items, the same approach used by the Company in the first two quarters of 2009. Under this approach, the amount of the quarterly dividend fluctuates directly with certain operating results of the company.


“Demand for Ruger firearms remained strong as the estimated sell-through of our products from distributors to retail in the third quarter of 2009 was 214,500 units, compared with estimated sell through of 143,100 units in the third quarter of 2008,” said Chief Executive Officer Michael O. Fifer. “This year-over-year increase in demand of approximately 50% substantially exceeded the 11% growth in the National Instant Check System (NICS) background checks over the same period, suggesting the likelihood of some market share gain by the Company and some increase in inventory at the retailers. Comparisons of NICS checks from period to period are often used as a proxy for consumer demand for firearms.”


Fifer continued, “Our firearms unit production in the third quarter of 2009 was 242,500 units, compared with production of 158,900 units in the third quarter of 2008, an increase of 53% year over year. Cash generated from operations during the third quarter of 2009 was $15.2 million. At the end of the third quarter of 2009, our cash, cash equivalents and short-term investments totaled $53.1 million. Our pre-LIFO working capital of $102.3 million, less the LIFO reserve of $41.3 million, resulted in working capital of $61.0 million and a current ratio of 2.8 to 1. The company has no debt. For the first nine months of 2009, capital expenditures totaled $10.3 million. We expect to invest approximately $13 million for capital expenditures during 2009.”

 





























































































































































































































































































































































































































STURM, RUGER & COMPANY, INC.
 

Condensed Statements of Income (Unaudited)


(Dollars in thousands, except per share data)

 
  Three Months Ended       Nine Months Ended
October 3,   September 27,       October 3,   September 27,
2009   2008       2009   2008
 
 
Net firearms sales $ 70,011 $ 40,318 $

203,611

$ 117,186
Net castings sales     1,175     1,504         3,495       5,806
Total net sales 71,186 41,822 207,106 122,992
 
Cost of products sold     49,404     34,964         140,766       96,985
Gross profit     21,782     6,858         66,340       26,007
 
Expenses:
Selling 5,145 3,864 15,909 12,350
General and administrative 4,556 2,615 14,940 9,524
Other operating expenses, net     750     –         750       –
Total operating expenses     10,451     6,479         31,599       21,874
 
Operating income     11,331     379         34,741       4,133
 
Other income:
Interest income (expense) 8 72 (12 ) 352
Other income, net     125     150         101       204
Total other income, net     133     222         89       556
 
Income before income taxes 11,464 601 34,830 4,689
 
Income taxes     4,356     229  
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