Sturm, Ruger & Company reported sales and earnings growth for the first quarter of 2010 came as a result of improved sell-through numbers and strong consumer demand during the period. The Southport, CT-based firearms manufacturer said sales and earnings growth of 7.5% and 43.2%, respectively, came despite a 4% decline in background checks from the National Instant Criminal Background Check System, a system that is commonly used as a proxy for trends in retail firearm demand.
Sell-through for Ruger improved by an estimated 8% from the year ago-period while firearms unit production increased 15.2% from Q1 last year. Among new product introductions, management noted that the January launch of the SR9c compact pistol was a strong driver of demand, as new products accounted for 39%, or $26.6 million, of Rugers Q1 sales. In comparison, new product sales represented 31% of total sales for the full fiscal year 2009.
Total firearms sales for the quarter improved 8.1% to $67.3 million from $62.2 million a year ago and accounted for about 98% of Rugers total sales.
Cash generated from operations during the quarter was $10 million. Backlog improved slightly to $299 million from $297 million a year ago with average sales price of ending backlog reported down 9% on increased orders for pistols and decreased orders for the SR-556 sporting rifle.
In related news, Ruger CEO Michael Fifer announced recently that the companys Board of Directors has voted to declare a quarterly dividend of 9.3 cents per share on the companys issued and outstanding shares of common stock.
