RGR Sturm Ruger and Co

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the third quarter of 2024, net sales were $122.3 million and diluted earnings were 28¢ per share. For the corresponding period in 2023, net sales were $120.9 million and diluted earnings were 42¢ per share.

For the nine months ended September 28, 2024, net sales were $389.9 million and diluted earnings were $1.15 per share. For the corresponding period in 2023, net sales were $413.2 million and diluted earnings were $2.13 per share.

The Company also announced today that its Board of Directors declared a dividend of 11¢ per share for the third quarter for stockholders of record as of November 13, 2024, payable on November 27, 2024. This dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. This dividend is approximately 40% of net income.

Chief Executive Officer Christopher J. Killoy commented on the 2024 results, “The diversity of our products has been instrumental to our performance this year. We capitalized on the strong demand for several of our product families, including the Ruger American Rifle Generation II bolt-action rifles, the Marlin lever-action rifles, and the Security-380 pistol, maintaining our market share without sacrificing our long-term focus or pricing discipline. Despite the current promotion-rich environment, the estimated sell-through of our products from our independent distributors to retailers increased while our finished goods inventory and our distributors’ inventories have decreased 125,000 units in the past year. We are well positioned to increase production entering the traditionally stronger fall and winter selling seasons, allowing us to capitalize on the pent up demand for our more sought after products.”

Mr. Killoy discussed Ruger’s storied history, “Developing innovative new products to drive growth, excitement, and profitability has been the hallmark of Ruger since its inception 75 years ago. We are proud to have introduced so many new offerings in this milestone year:

• American Rifle Generation II family of rifles,
• The Marlin 1894, 1895 and 336 lever-action rifles,
• LC Carbine chambered in .45 Auto and 10mm Auto,
• 75th Anniversary Mark IV Target pistol,
• 75th Anniversary 10/22 rifles,
• 75th Anniversary LCP MAX pistol,
• 75th Anniversary No. 1 rifle, and
• Mini-14 rifle with side-folding stock.

And we are not done. Keep an eye out for an exciting new product launch in the coming months.”

Mr. Killoy concluded with an update from the National Association of Sporting Goods Wholesalers Annual Exposition, “We were thrilled to be recognized by our wholesale customers with three industry awards at this year’s NASGW Show in Kansas City, Missouri. We were named ‘Firearm Manufacturer of the Year’ for the second consecutive year, and the 12th time in the past 15 years. Additionally, the Ruger American Rifle Generation II rifle earned the NASGW-POMA Caliber Awards for ‘Best New Rifle’ and ‘Best New Overall Product’.”

Mr. Killoy himself was honored with the NASGW “Chairman’s Award” which is the highest honor from the NASGW Board of Directors, given to those with long-lasting, significant impact in the outdoor shooting sports industry.

Mr. Killoy made the following observations related to the Company’s third quarter 2024 performance:

• The estimated unit sell-through of the Company’s products from the independent distributors to retailers increased 4% in first nine months of 2024 compared to the prior year period. For the same period, NICS background checks, as adjusted by the National Shooting Sports Foundation, decreased 3%.
• Sales of new products, including the Security-380 pistol, Super Wrangler revolver, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II, represented $113.3 million or 31.2% of firearm sales in the first nine months of 2024. New product sales include only major new products that were introduced in the past two years.
• Compared to the third quarter of 2023, the Company’s and distributors’ finished goods inventories decreased 26,500 units and 98,600 units, respectively.
• Cash provided by operations during the first nine months of 2024 was $35.5 million. At September 28, 2024, our cash and short-term investments totaled $96.0 million. Our current ratio is 4.5 to 1 and we have no debt.
• In the first nine months of 2024, capital expenditures totaled $17.2 million related to new product introductions, upgrades to our manufacturing equipment, and facilities. We expect our 2024 capital expenditures to approximate $20 million.
• The Company returned $39.3 million to its shareholders in the first nine months of 2024 through:
  • the payment of $10.0 million of quarterly dividends, and
  • $29.3 million through the repurchase of 699,000 shares of its common stock at an average cost of $41.99 per share, representing 4% of our outstanding shares.
• At September 28, 2024, stockholders’ equity was $314.9 million, which equates to a book value of $18.76 per share, of which $5.72 per share was cash and short-term investments.

Today, the Company filed its Quarterly Report on Form 10-Q for the third quarter of 2024. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

Tomorrow, October 31, 2024, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the third quarter operating results. Interested parties can listen to the webcast via this link or by visiting Ruger.com/corporate. Those who wish to ask questions during the webcast will need to pre-register prior to the meeting.

The Quarterly Report on Form 10-Q for the third quarter of 2024 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Quarterly Report on Form 10-Q to ensure that they have adequate information to make informed investment judgments.

About Sturm, Ruger & Co., Inc.

Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. With products made in America, Ruger offers consumers almost 800 variations of more than 40 product lines, across both the Ruger and Marlin brands. For 75 years, Ruger has been a model of corporate and community responsibility. Our motto, “Arms Makers for Responsible Citizens®,” echoes our commitment to these principles as we work hard to deliver quality and innovative firearms.

The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.

STURM, RUGER & COMPANY, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

 

 

September 28, 2024

December 31, 2023

 

 

 

 

 

 

Assets

 

 

 

 

 

Current Assets

 

 

Cash

$

7,522

 

$

15,174

 

Short-term investments

 

88,455

 

 

102,485

 

Trade receivables, net

 

60,157

 

 

59,864

 

 

 

 

Gross inventories

 

150,460

 

 

150,192

 

Less LIFO reserve

 

(68,265

)

 

(64,262

)

Less excess and obsolescence reserve

 

(6,159

)

 

(6,120

)

Net inventories

 

76,036

 

 

79,810

 

 

 

 

Prepaid expenses and other current assets

 

14,944

 

 

14,062

 

Total Current Assets

 

247,114

 

 

271,395

 

 

 

 

Property, plant and equipment

 

474,501

 

 

462,397

 

Less allowances for depreciation

 

(401,972

)

 

(390,863

)

Net property, plant and equipment

 

72,529

 

 

71,534

 

 

 

 

Deferred income taxes

 

14,918

 

 

11,976

 

Other assets

 

38,893

 

 

43,912

 

Total Assets

$

373,454

 

$

398,817

 

STURM, RUGER & COMPANY, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

(Dollars in thousands, except per share data)

 

 

September 28, 2024

December 31, 2023

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current Liabilities

 

 

Trade accounts payable and accrued expenses

$

31,495

 

$

31,708

 

Contract liabilities with customers

 

-

 

 

149

 

Product liability

 

270

 

 

634

 

Employee compensation and benefits

 

17,413

 

 

24,660

 

Workers’ compensation

 

5,792

 

 

6,044

 

Total Current Liabilities

 

54,970

 

 

63,195

 

 

 

 

Employee compensation

 

1,712

 

 

1,685

 

Product liability accrual

 

61

 

 

46

 

Lease liability

 

1,766

 

 

2,170

 

 

 

 

Contingent liabilities

 

-

 

 

-

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

Common Stock, non-voting, par value $1:

 

 

Authorized shares 50,000; none issued

 

-

 

 

-

 

Common Stock, par value $1:

 

 

Authorized shares – 40,000,000

 

 

 

 

 

 

2024 – 24,467,983 issued,

 

 

 

 

 

 

16,790,824 outstanding

 

 

 

 

 

 

2023 – 24,437,020 issued,

 

 

 

 

 

 

17,458,620 outstanding

 

24,468

 

 

24,437

 

Additional paid-in capital

 

49,441

 

 

46,849

 

Retained earnings

 

428,014

 

 

418,058

 

Less: Treasury stock – at cost

 

 

 

 

 

 

2024 – 7,677,159 shares

 

 

 

 

 

 

2023 – 6,978,400 shares

 

(186,978

)

 

(157,623

)

Total Stockholders’ Equity

 

314,945

 

 

331,721

 

Total Liabilities and Stockholders’ Equity

$

373,454

 

$

398,817

 

STURM, RUGER & COMPANY, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

 

 

Three Months Ended

Nine Months Ended

 

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

 

 

 

 

 

Net firearms sales

$

121,512

 

$

120,368

 

$

387,349

 

$

411,114

 

Net castings sales

 

775

 

 

525

 

 

2,519

 

 

2,036

 

Total net sales

 

122,287

 

 

120,893

 

 

389,868

 

 

413,150

 

 

 

 

 

 

Cost of products sold

 

99,615

 

 

96,165

 

 

308,639

 

 

311,788

 

 

 

 

 

 

Gross profit

 

22,672

 

 

24,728

 

 

81,229

 

 

101,362

 

 

 

 

 

 

Operating expenses:

 

 

 

 

Selling

 

8,998

 

 

8,669

 

 

28,188

 

 

27,702

 

General and administrative

 

9,932

 

 

9,733

 

 

32,796

 

 

31,898

 

Total operating expenses

 

18,930

 

 

18,402

 

 

60,984

 

 

59,600

 

 

 

 

 

 

Operating income

 

3,742

 

 

6,326

 

 

20,245

 

 

41,762

 

 

 

 

 

 

Other income:

 

 

 

 

Interest income

 

1,155

 

 

1,454

 

 

3,839

 

 

4,147

 

Interest expense

 

(24

)

 

(122

)

 

(66

)

 

(177

)

Other income, net

 

392

 

 

431

 

 

749

 

 

1,082

 

Total other income, net

 

1,523

 

 

1,763

 

 

4,522

 

 

5,052

 

 

 

 

 

 

Income before income taxes

 

5,265

 

 

8,089

 

 

24,767

 

 

46,814

 

 

 

 

 

 

Income taxes

 

527

 

 

658

 

 

4,681

 

 

8,848

 

 

 

 

 

 

Net income and comprehensive income

$

4,738

  

$

7,431

 

$

20,086

  

$

37,966

 

 

 

 

 

 

Basic earnings per share

$

0.28

 

$

0.42

 

$

1.17

 

$

2.14

 

 

 

 

 

 

Diluted earnings per share

$

0.28

 

$

0.42

 

$

1.15

 

$

2.13

 

  Weighted average number of common shares outstanding - Basic

 

16,847,866

 

 

17,722,682

  

 

17,207,632

 

 

17,705,280

  

  Weighted average number of common shares outstanding - Diluted

 

17,137,065

 

  

 

17,889,089

 

 

 

17,455,265

 

 

17,828,710

 

 

 

 

 

 

Cash dividends per share

$

0.19

 

$

0.36

 

$

0.58

 

$

6.10

 

STURM, RUGER & COMPANY, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

 

 

Nine Months Ended

 

September 28, 2024

September 30, 2023

 

 

 

Operating Activities

 

 

Net income

$

20,086

 

$

37,966

 

Adjustments to reconcile net income to cash provided by operating activities:

 

 

Depreciation and amortization

 

16,941

 

 

19,576

 

Stock-based compensation

 

3,247

 

 

2,968

 

Excess and obsolescence inventory reserve

 

39

 

 

-

 

Gain on sale of assets

 

-

 

 

(4

)

Deferred income taxes

 

(2,942

)

 

(4,058

)

Changes in operating assets and liabilities:

 

 

Trade receivables

 

(293

)

 

5,550

 

Inventories

 

3,735

 

 

(14,278

)

Trade accounts payable and accrued expenses

 

(514

)

 

(5,967

)

Contract liability with customers

 

(149

)

 

405

 

Employee compensation and benefits

 

(7,360

)

 

(8,129

)

Product liability

 

(349

)

 

144

 

Prepaid expenses, other assets and other liabilities

 

3,042

 

 

(15,704

)

Income taxes payable

 

-

 

 

(1,171

)

Cash provided by operating activities

 

35,483

 

 

17,298

 

 

 

 

Investing Activities

 

 

Property, plant and equipment additions

 

(17,196

)

 

(11,637

)

Proceeds from sale of assets

 

-

 

 

5

 

Purchases of short-term investments

 

(100,993

)

 

(141,410

)

Proceeds from maturities of short-term investments

 

115,023

 

 

194,091

 

Cash (used for) provided by investing activities

 

(3,166

)

 

41,049

 

 

 

 

Financing Activities

 

 

Remittance of taxes withheld from employees related to

 

 

 

 

 

 

share-based compensation

 

(624

)

 

(2,156

)

Repurchase of common stock

 

(29,355

)

 

-

 

Dividends paid

 

(9,990

)

 

(107,805

)

Cash used for financing activities

 

(39,969

)

 

(109,961

)

 

 

 

Decrease in cash and cash equivalents

 

(7,652

)

 

(51,614

)

 

 

 

Cash and cash equivalents at beginning of period

 

15,174

 

 

65,173

 

 

 

 

Cash and cash equivalents at end of period

$

7,522

 

$

13,559

 

Non-GAAP Financial Measures

In an effort to provide investors with additional information regarding its financial results, the Company refers to various United States generally accepted accounting principles (“GAAP”) financial measures and two non-GAAP financial measures, EBITDA and EBITDA margin, which management believes provides useful information to investors. These non-GAAP financial measures may not be comparable to similarly titled financial measures being disclosed by other companies. In addition, the Company believes that the non-GAAP financial measures should be considered in addition to, and not in lieu of, GAAP financial measures. The Company believes that EBITDA and EBITDA margin are useful to understanding its operating results and the ongoing performance of its underlying business, as EBITDA provides information on the Company’s ability to meet its capital expenditure and working capital requirements, and is also an indicator of profitability. The Company believes that this reporting provides better transparency and comparability to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate the Company’s financial performance.

EBITDA is defined as earnings before interest, taxes, and depreciation and amortization. The Company calculates this by adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, and subtracting the amount of interest income that was included in net income from net income to arrive at EBITDA. The Company calculates EBITDA margin by dividing EBITDA by total net sales.

Non-GAAP Reconciliation – EBITDA

EBITDA

(Unaudited, dollars in thousands)

 

 

Three Months Ended

Nine Months Ended

 

September 28, 2024

September 30, 2023

September 28, 2024

September 30, 2023

 

 

 

 

Net income

$

4,738

 

$

7,431

 

$

20,086

 

$

37,966

 

 

 

 

 

 

Income tax expense

 

527

 

 

658

 

 

4,681

 

 

8,848

 

Depreciation and amortization expense

 

5,804

 

 

6,530

 

 

16,941

  

 

19,576

  

Interest income

 

(1,155

)

 

(1,454

)

 

(3,839

)

 

(4,147

)

Interest expense

 

24

 

 

122

 

 

66

 

 

177

 

EBITDA

$

9,938

 

$

13,287

 

$

37,935

 

$

62,420

 

EBITDA margin

 

8.1

%

 

11.0

%

 

9.7

%

 

15.1

%

Net income margin

 

3.9

%

 

6.1

%

 

5.2

%

 

9.2

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030775823/en/

Sturm, Ruger & Company, Inc. One Lacey Place Southport, CT 06890 www.ruger.com 203-259-7843