Sturm, Ruger & Company, Inc. reported net first quarter sales of $68.3 million and earnings per share of 44¢, compared with sales of $63.5 million and earnings per share of 30¢ in the first quarter of 2009.
Chief Executive Officer Michael O. Fifer made the following comments related to the Companys first quarter of 2010:
“Our year-over-year performance was highlighted by a 47% increase in earnings and an 8% increase in net sales,” said CEO Michael O. Fifer. “New product introductions, including the new SR9c pistol, remain a strong driver of demand, and products introduced since January 2008 represented $27 million or 39% of sales in the first quarter of 2010.”
Demand remained strong in the first quarter of 2010. Estimated sell-through from distributors to retailers in the first quarter of 2010 increased by approximately 8% from the first quarter of 2009 and approximately 21% from the fourth quarter of 2009. This sales growth, despite declines of 4% and 5% in National Instant Criminal Background Check System (NICS) background checks over the same periods, suggests the company gained market share, Fifer said.
“Our firearms unit production increased 3% from the fourth quarter of 2009, and 15% from the first quarter of 2009,” he said. “Our backlog grew to 239,900 units and $72 million at the end of the first quarter of 2010, from 181,000 units and $60 million at the end of 2009.”
In January, RGR launched the SR9c, a compact version of the full-size SR9 striker-fired, semi-automatic pistol. The SR9c has been very popular since its introduction, and it has also generated renewed interest in the full-size SR9 pistol.
During the first quarter of 2010, capital expenditures totaled $5.7 million, much of it related to tooling and equipment for new products. RGR expects to invest approximately $12 to $18 million for capital expenditures during 2010.
At the end of the first quarter of 2010, stockholders equity was $103 million, which equates to a book value of $5.39 per share, of which $3.08 per share was cash and equivalents.
STURM, RUGER & COMPANY, INC.
Condensed Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
|Three Months Ended|
|April 3, 2010||April 4, 2009|
|Net firearms sales||$67,269||$62,227|
|Net castings sales||1,007||1,302|
|Total net sales||68,276||63,529|
|Cost of products sold||45,145||44,003|
|General and administrative||3,932||4,147|
|Other operating expenses, net||400||500|
|Total operating expenses||10,231||10,092|
|Interest (expense) income, net||(33)||(18)|
|Other income (expense), net||127||(50)|
|Total other income, net||94||(68)|
|Income before income taxes||12,994||9,366|
|Net income||$8,316||$ 5,807|
|Earnings per share|