Sturm, Ruger & Company, Inc. reported sales in the second quarter fell 11% to $64.4 million from $72.4 million a year ago. Earnings slid 5.7% to $8.2 million, or 43 cents a share, from $8.7 million, or 46 cents, a year earlier.

For the six months ended July 3, 2010, net sales were $132.7 million and earnings were 86¢ per share. For the corresponding period in 2009, net sales were $135.9 million and earnings were 76¢ per share.

Chief Executive Officer Michael O. Fifer made the following comments related to the company's results of 2010:

    * New product introductions remain a strong driver of demand and represented $42 million, or 32% of sales, in the first six months of 2010.
    * The estimated sell-through of the company's products from distributors to retailers in the first half of 2010 increased 1% from the first half of 2009, despite a reduction in National Instant Criminal Background Check System (NICS) background checks of 2% during this period.
    * Cash generated from operations during the first half of 2010 was $17.8 million. At the end of the second quarter of 2010, our cash and equivalents totaled $58.7 million. Our current ratio is 4.0 to 1 and we have no debt.
    * During the first half of 2010, capital expenditures totaled $12.6 million, much of it related to tooling and equipment for new products. We expect to invest approximately $18 to $20 million for capital expenditures during 2010.
    * At the end of the second quarter of 2010, stockholders' equity was $109 million, which equates to a book value of $5.68 per share, of which $3.05 per share was cash and equivalents.
    * For the third consecutive year, a Ruger handgun has been named the Shooting Industry Academy of Excellence “Handgun of the Year”. The Ruger SR9c is the compact version of the SR9 striker-fired pistol, one of the slimmest and most ergonomic 9mm pistols on the market today.

The company also announced today that its Board of Directors declared a
dividend of 10 cents per share for the second quarter, for shareholders
of record as of August 13, 2010, payable on August 27, 2010. The amount
of the dividend was based on a percentage of Operating Profit after
adjustment for certain items, the same approach used by the company
since 2009. Under this approach, the amount of the quarterly dividend
fluctuates directly with certain operating results of the company.


 

Three Months Ended

 

Six Months Ended



July 3, 2010

 

July 4, 2009

 

July 3, 2010

 

July 4, 2009




 


 


 










 

Net firearms sales


$63,621



$71,372



$130,891



$133,600


Net castings sales

 

768

 

 

1,018

 

 

1,775

 

 

2,320

 

Total net sales


64,389



72,390



132,666



135,920










 

Cost of products sold

 

42,649

 

 

47,358

 

 

87,794

 

 

91,362

 

Gross profit

 

21,740

 

 

25,032

 

 

44,872

 

 

44,558

 









 

Expenses:









Selling


5,118



5,319



11,017



10,764


General and administrative


3,984



5,563



7,919



9,709


Other operating expenses, net

 



 

 

175

 

 

398

 

 

675

 

Total operating expenses

 

9,102

 

 

11,057

 

 

19,334

 

 

21,148

 









 

Operating income

 

12,638

 

 

13,975

 

 

25,538

 

 

23,410

 









 

Other income:









Interest (expense) income, net


(24

)


39



(57

)


(40

)

Other income (expense), net

 

174

 

 

(14

)

 

301

 

 

(4

)

Total other income (expense), net

 

150

 

 

25

 

 

244

 

 

(44

)









 

Income before income taxes


12,788


About The Author

Thomas J. Ryan

Thomas J. Ryan Senior Business Editor | SGB Media tryan@sgbonline.com | 917.375.4699

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