Sturm, Ruger & Company, Inc. announced that for the second quarter of 2011, the company had net sales of $79.6 million and earnings of 57¢ per share, compared with net sales of $64.4 million and earnings of 43¢ per share in 2010.


For the six months ended July 2, 2011, net sales were $155.1 million and earnings were $1.00 per share. For the corresponding period in 2010, net sales were $132.7 million and earnings were 86¢ per share.


The company also announced that its Board of Directors voted to declare a quarterly dividend of 14.2¢ per share on the companys issued and outstanding shares of common stock. This cash dividend will be paid on August 26, 2011 to stockholders of record as of August 12, 2011.


Chief Executive Officer Michael O. Fifer made the following comments related to the companys results:


•The company launched the new SR1911 pistol, the new Single-Ten revolver, and the new SR40c pistol in the second quarter of 2011. New product introductions are a strong driver of demand and represented $26.7 million or 34% of sales in the second quarter of 2011.


•Demand for our products remained strong in the second quarter of 2011. The estimated sell-through of the Companys products from the independent distributors to retailers in the second quarter of 2011 increased by approximately 24% from the second quarter of 2010. National Instant Criminal Background Check System (NICS) background checks (as adjusted by the National Shooting Sports Foundation) increased 13% during this period.

•The incoming order rate in the second quarter of 2011 increased 90% from the second quarter of 2010.

•Cash provided by operating activities was $32.4 million for the six months ended July 2, 2011. At July 2, 2011, our cash and equivalents and short-term investments totaled $76.5 million. Current ratio is 3.2 to 1 and we have no debt.

•During the first half of 2011, capital expenditures totaled $7.7 million, much of it related to tooling and equipment for new products. We expect to invest approximately $15 million for capital expenditures during 2011.

•At July 2, 2011, stockholders equity was $128.7 million, which equates to a book value of $6.81 per share, of which $4.05 per share was cash and equivalents and short-term investments.

•During the first half of 2011, we returned $4.8 million to our shareholders through:


1. The payment of $2.8 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 second quarter of 2011, $8.0 million remains available for future stock repurchases.

•In May, the Company announced the Ruger Million Gun Challenge to benefit the National Rifle Association. 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.

 






























































































































































































































































































































































































































































































































































































STURM, RUGER & COMPANY, INC.

Condensed Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
 
     
Three Months
Ended
   
Six Months
Ended
    July 2, 2011     July 3, 2010     July 2, 2011     July 3, 2010
           
 
Net firearms sales $ 78,471 $ 63,621 $ 152,912 $ 130,891
Net castings sales       1,151         768         2,151         1,775  
Total net sales 79,622 64,389 155,063 132,666
 
Cost of products sold 51,157 42,649 102,604 87,794
                         
Gross profit       28,465         21,740         52,459         44,872  
 
Operating expenses:
Selling 6,468 5,118 13,380 11,017
General and administrative 4,935 3,984 9,560 7,919
Other operating expenses, net       –         –         –         398  
Total operating expenses       11,403         9,102         22,940         19,334  
 
Operating income       17,062         12,638         29,519         25,538  
 
Other income:
Interest (expense) income, net (13 ) (24 ) (33 ) (57 )
Other income, net       114         174         290         301  
Total other income, net       101         150         257         244  
 
Income before income taxes 17,163 12,788 29,776 25,782
 
Income taxes       6,350         4,604         11,017         9,281  
 
Net income     $ 10,813       $ 8,184       $ 18,759       $ 16,501  
 
Basic earnings per share     $ 0.57       $

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