Sturm, Ruger & Company, Inc. announced net income rose 67 percent to $18,014,000 from $10,813,000 for the second quarter ended June 30. The Southport, CT, gun maker reported net sales of $119.6 million and fully diluted earnings of 91 cents per share, compared with net sales of $79.6 million and fully diluted earnings of 56 cents per share in the second quarter of 2011.
The company also announced that its Board of Directors declared a dividend of 37.7 cents per share for the second quarter, for shareholders of record as of August 13, 2012, payable on August 27, 2012. This dividend varies every quarter because the company pays a percent of earnings rather than a fixed amount per share. Effective with the dividend paid in March 2012, the company increased the percent of quarterly earnings paid out as dividends by 67 percent. This dividend is approximately 40 percent of net income.
Chief Executive Officer Michael O. Fifer made the following comments related to the Company’s results:
- Earnings increased 63 percent from the second quarter of 2011, driven by the 50 percent growth in sales and the company's ongoing focus on continuous improvement in its operations.
- New product introductions were a significant component of sales growth as new product sales represented $87.8 million, or 38 percent, of sales in the first half of 2012. New product introductions in the first half of 2012 included:
- Ruger American Rifle
- SR22 pistol
- 10/22 Take Down rifle
- 22/45 Lite pistol
- Cash generated from operations during the six months ended June 30 was $37.5 million. At June 30, cash, cash equivalents, and short-term investments totaled $96.0 million, an increase of $14.9 million from December 2011. Current ratio is 3.3 to 1 and the company has no debt.
- In the first half of 2012, capital expenditures totaled $12.3 million, much of it related to new products and the expansion of production capacity. The company expects to invest approximately $20 million for capital expenditures during 2012.
- In the first half of 2012, the company returned $10.3 million to its shareholders through the payment of dividends. An additional $7.2 million in dividends will be paid to shareholders on August 27, 2012.
- At June 30, stockholders’ equity was $162.7 million, which equates to a book value of $8.49 per share, of which $5.01 per share was cash and equivalents.