Sturm, Ruger & Company, Inc. reported revenues climbed 28.8 percent in 2011 to $328.8 million from $255.2 million in 2010. EPS reached $2.09 per share, compared with $1.46 per share in 2010. For the fourth quarter of 2011, sales jumped 45.4 percent to $93.2 million from $64.1 million.
EPS in the quarter improved to 54 cents a share from 30 cents a year ago.
The company also announced today that its Board of Directors declared a dividend of 21.2c per share for the fourth quarter, for shareholders of record as of March 9, 2012, payable on March 23, 2012. This dividend necessarily varies every quarter because the company pays a percent of earnings rather than a fixed amount per share. Effective with this dividend, the company increased the percent of quarterly earnings paid out as dividends by 67 percent.
Chief Executive Officer Michael O. Fifer made the following comments related to the company's results:
— Our earnings increased 42 percent in 2011, driven by the 29 percent growth in sales and our ongoing focus on continuous improvement in our operations.
— In 2011, new product introductions were a significant component of our sales growth as new product sales represented $98.6 million or 30 percent of sales in 2011.
— The estimated sell-through of our products from independent distributors to retailers in 2011 increased 20 percent from 2010. During this period, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation) increased 14 percent.
— Cash generated from operations during 2011 was $57.4 million. At December 31, 2011, our cash and cash equivalents totaled $81.1 million, an increase of $23.5 million from December 2010. Our current ratio is 3.0 to 1 and we have no debt.
— In 2011, capital expenditures totaled $22.1 million, much of it related to tooling and equipment for new products. We expect to invest approximately $20 million for capital expenditures during 2012.
— At December 31, 2011, stockholders' equity was $137.4 million, which equates to a book value of $7.20 per share, of which $4.25 per share was cash and equivalents.
— In 2011, we returned $10.2 million to our shareholders through the following: — Payment of $8.2 million of dividends, and
— 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.
— In May 2011, the company announced the Ruger Million Gun Challenge to benefit the National Rifle Association. Ruger pledged to 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. Through December 2011, Ruger has donated $871,100 to the NRA.
STURM, RUGER & COMPANY, INC.
Statements of Income
(In thousands, except per share data)
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Year ended December 31, 2011 2010 2009
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Net firearms sales $ 324,200 $ 251,680 $ 266,566
Net castings sales 4,616 3,526 4,419
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Total net sales 328,816 255,206 270,985
Cost of products sold 217,058 171,224 183,380
Gross profit 111,758 83,982 87,605
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Operating Expenses:
Selling 28,691 23,517 21,822
General and administrative 20,970 16,652 20,387
Other operating (income) expenses, net (319) 420 1,492
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Total operating expenses 49,342 40,589 43,701
Operating income 62,416 43,393 43,904
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Other income:
Royalty income 873 429 490
Interest income 29 48 118
Interest expense (110) (143) (158)
Other income, net 308 422 6
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Total other income, net 1,100 756 456
Income before income taxes 63,516 44,149 44,360
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Income taxes 23,501 15,894 16,857
Net income $ 40,015 $ 28,255 $ 27,503
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Basic Earnings Per Share $ 2.12 $ 1.48 $ 1.44
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Fully Diluted Earnings Per Share $ 2.09 $ 1.46 $ 1.42
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Cash Dividends Per Share $ 0.43 $ 0.33 $ 0.31
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