Sturm Ruger Full-Year Sales Up to $181.4M

March 3, 2009
SGB Update

Sturm, Ruger & Company, Inc. saw a fourth quarter surge in sales attributed to the election of President Obama and the fear of federal firearms restrictions. 

 

The company had full year net sales of $181.4 million and earnings per share of 43 cents, a 15.9% raise from net sales of $156.5 million and earnings per share of 46 cents in 2007. Selling, general and administrative expenses were $30.1 million in 2008. This represents an increase of $1.3 million or 4.5% from 2007 expenses of $28.8 million. The increase reflects increased advertising and sales promotion expenses, many of which related to new products, and greater personnel-related expenses. Operating Income was $13.5 million or 7.5% of sales in 2008. This is a 48.5% increase of $4.4 million from 2007 operating income of $9.1 million or 5.8% of sales.


CEO Michael O. Fifer made the following comments related to the 2008 results: “Our firearm sales grew from $144 million in 2007 to $174 million in 2008 on the strength of new product shipments and overall robust firearms demand, particularly in the fourth quarter. Firearm orders received grew from $156 million in 2007 to $234 million in 2008. The order backlog at Dec. 31, 2008 was $48 million, up from $18 million at Dec. 31, 2007.”

Sturm Ruger Full-Year Sales Up to $181.4M

February 26, 2009
SGB Executive
by

Sturm, Ruger & Company, Inc. had full-year net sales of $181.4 million and earnings per share of 43 cents, a 15.9% raise from net sales of $156.5 million and earnings per share of 46 cents in 2007.

CEO Michael O. Fifer made the following comments related to the 2008 results: “Our firearm sales grew from $144 million in 2007 to $174 million in 2008 on the strength of new product shipments and overall robust firearms demand, particularly in the fourth quarter. Firearm orders received grew from $156 million in 2007 to $234 million in 2008. The order backlog at Dec. 31, 2008 was $48 million, up from $18 million at Dec. 31, 2007.
“Nonetheless, shipments in 2009 will be limited to units produced in 2009 as finished goods inventory was depleted during the fourth quarter of 2008. Firearms unit production increased 29% in 2008 compared to 2007. We expect production capacity to improve in 2009, although at a more modest pace than in 2008, as we continue to work on the transition from large-scale batch production to lean manufacturing, with an emphasis on setting up manufacturing cells that facilitate single-piece flow production and inventory pull systems. At Dec. 31, 2008, our cash, cash equivalents and short-term investments totaled $28.2 million. Our pre-LIFO working capital of $90.6 million, less the LIFO reserve of $44.3 million, resulted in working capital of $46.3 million and a current ratio of 2.6 to 1.”
In 2008, the company repurchased 1,535,000 shares of its common stock, representing 7.5% of the outstanding shares, in the open market at an average price of $6.57 per share. All of these purchases were made with cash held by the company and no debt was incurred. Currently, a stock repurchase program of up to $4.7 million remains authorized by the Board of Directors, and the company intends to file a plan under Rule 10b5-1 on Mar. 9, 2009 covering the period through Apr. 24, 2009. This plan may result in the repurchase of shares of common stock during that period. In December 2008, the company renewed its unsecured $25 million revolving line of credit with a bank. This facility is renewable annually and now terminates on Dec. 13, 2009. On Dec. 31, 2008, the company had a $1 million outstanding balance on the credit facility.
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