Sturm, Ruger & Co. Inc. reported revenues in the first quarter improved 9.0 percent to $169.9 million. But its backlog was down significantly at the close of the period “due to the unprecedented level of orders received in the first quarter of 2013.”
According to its 10Q filing, net orders received in the first quarter of 2014 decreased 61.4 percent from the comparable prior year period. Its ending order backlog was 1.4 million units at Mar. 29, a 33.3 percent decline from 2.1 million units at the same time a year ago.
Firearms sales grew 10.2 percent to $169.2 million. Firearms unit shipments expanded 11.8 percent. The greater percentage increase in firearms unit shipments compared to firearms net sales is attributable to decreased accessory sales. New products represented $41.3 million or 24 percent of firearm sales in the quarter.
Casting sales slumped 7.7 percent to $722,000. The decline was attributed to a decision in 2013 to prioritize its internal casting needs and terminate many of its outside casting customers.
In a statement, CEO Michael O. Fifer noted that demand for Ruger's products significantly outpaced the growth in industry demand as measured by the National Instant Criminal Background Check System (NICS) background checks (as adjusted by the National Shooting Sports Foundation). For the first quarter, Ruger saw a 10 percent increase in estimated Ruger units sold from distributors to retailers while total adjusted NICS background checks was down 22 percent.
Net earnings in the quarter inched up 2.5 percent to $24.3 million, or $1.22 a share. Gross margin narrowed to 36 percent from 39.3 percent as the company's sales shifted away from higher-margin firearms accessories sales.
Results came out ahead of Wall Street's consensus estimates that called for EPS of $1.12 and revenue of $157.9 million.
