EXHIBIT 99.1
[LOGO] STURM, RUGER & COMPANY, INC.
SOUTHPORT, CONNECTICUT 06890 U.S.A.
FOR IMMEDIATE RELEASE
STURM, RUGER & COMPANY, INC. REPORTS 2008 RESULTS
AND FILES ANNUAL REPORT ON FORM 10-K
SOUTHPORT, CONNECTICUT, February 24, 2009 - Sturm, Ruger & Company, Inc.
(NYSE-RGR) today filed its 2008 Annual Report on Form 10-K, which has been
posted and is available on the SEC website at www.sec.gov and the Ruger website
at www.ruger.com/corporate/. The financial statements included in the 2008
Annual Report on Form 10-K are attached to this press release. However,
investors are urged to read the complete Form 10-K to ensure that they have
adequate information to make informed investment judgments.
In 2008, the Company reported net sales of $181.4 million and earnings per
share of $0.43, compared to net sales of $156.5 million and earnings per share
of $0.46 in 2007. A detailed analysis of the operations and results of both
periods is included in the MD&A section of the Form 10-K.
Chief Executive Officer Michael O. Fifer made the following comments
related to the 2008 results:
o Our firearm sales grew from $144 million in 2007 to $174 million in 2008
on the strength of new product shipments and overall robust firearms
demand, particularly in the fourth quarter.
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o Firearm orders received grew from $156 million in 2007 to $234 million in
2008. The order backlog at December 31, 2008 was $48 million, up from $18
million at December 31, 2007. Nonetheless, shipments in 2009 will be
limited to units produced in 2009 as finished goods inventory was depleted
during the fourth quarter of 2008.
o Firearms unit production increased 29% in 2008 compared to 2007. We expect
production capacity to improve in 2009, although at a more modest pace
than in 2008, as we continue to work on the transition from large-scale
batch production to lean manufacturing, with an emphasis on setting up
manufacturing cells that facilitate single-piece flow production and
inventory pull systems.
o At December 31, 2008, our cash, cash equivalents and short-term
investments totaled $28.2 million. Our pre-LIFO working capital of $90.6
million, less the LIFO reserve of $44.3 million, resulted in working
capital of $46.3 million and a current ratio of 2.6 to 1.
o In 2008, the Company repurchased 1,535,000 shares of its common stock,
representing 7.5% of the outstanding shares, in the open market at an
average price of $6.57 per share. All of these purchases were made with
cash held by the Company and no debt was incurred. Currently, a stock
repurchase program of up to $4.7 million remains authorized by the Board
of Directors, and the Company intends to file a plan under Rule 10b5-1 on
March 9, 2009 covering the period through April 24, 2009. This plan may
result in the repurchase of shares of common stock during that period.
o In December 2008, the Company renewed its unsecured $25 million revolving
line of credit with a bank. This facility is renewable annually and now
terminates on December 13, 2009. On December 31, 2008, the Company had a
$1 million outstanding balance on the credit facility.
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About Sturm, Ruger
Sturm, Ruger was founded in 1949 and is one of the nation's leading
manufacturers of high-quality firearms for the commercial sporting market.
Sturm, Ruger is headquartered in Southport, CT, with plants located in Newport,
NH and Prescott, AZ.
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 including
lawsuits filed by mayors, attorneys general and other governmental entities and
membership organizations, 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.
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STURM, RUGER & COMPANY, INC.
Balance Sheets
(Dollars in thousands, except share data)
December 31, 2008 2007
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Assets
Current Assets
Cash and cash equivalents $ 9,688 $ 5,106
Short-term investments 18,558 30,504
Trade receivables, net 25,809 15,636
Gross inventories: 59,846 64,330
Less LIFO reserve (44,338) (46,890)
Less excess and obsolescence reserve (3,569) (4,143)
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Net inventories 11,939 13,297
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Deferred income taxes 6,400 5,878
Prepaid expenses and other current assets 3,374 3,091
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Total Current Assets 75,768 73,512
Property, Plant, and Equipment 125,026 126,496
Less allowances for depreciation (98,807) (104,418)
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Net property, plant and equipment 26,219 22,078
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Deferred income taxes 7,743 3,626
Other assets 3,030 2,666
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Total Assets $ 112,760 $ 101,882
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STURM, RUGER & COMPANY, INC.
December 31, 2008 2007
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Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable and accrued expenses $ 10,235 $ 8,102
Product liability 1,051 1,208
Employee compensation and benefits 7,994 4,860
Workers' compensation 5,067 5,667
Income taxes payable 4,171 411
Line of credit 1,000 --
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Total Current Liabilities 29,518 20,248
Accrued pension liability 16,946 4,840
Product liability 693 725
Contingent liabilities (Note 6) -- --
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
2008-22,798,732 issued,
19,047,323 outstanding
2007-22,787,812 issued,
20,571,817 outstanding 22,799 22,788
Additional paid-in capital 2,442 1,836
Retained earnings 93,500 84,834
Less: Treasury stock - at cost
2008 - 3,751,419 shares
2007 - 2,215,995 shares (30,153) (20,000)
Accumulated other comprehensive loss (22,985) (13,389)
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Total Stockholders' Equity 65,603 76,069
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Total Liabilities and Stockholders' Equity $ 112,760 $ 101,882
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STURM, RUGER & COMPANY, INC.
Statements of Income
(Dollars in thousands, except per share data)
Year ended December 31, 2008 2007 2006
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Net firearms sales $ 174,416 $ 144,222 $ 139,110
Net castings sales 7,067 12,263 28,510
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Total net sales 181,483 156,485 167,620
Cost of products sold 138,730 117,186 139,610
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Gross profit 42,753 39,299 28,010
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Operating Expenses:
Selling 17,189 15,092 15,810
General and administrative 12,867 13,678 12,110
Pension plan curtailment charges -- 1,143 --
Other operating (income) expenses, net (840) 271 (832)
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Total operating expenses 29,216 30,184 27,088
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Operating income 13,537 9,115 922
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Other income:
Gain on sale of real estate -- 5,168 --
Interest income 405 2,368 1,062
Other income (expense), net 36 8 (141)
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Total other income, net 441 7,544 921
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Income before income taxes 13,978 16,659 1,843
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Income taxes 5,312 6,330 739
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Net income $ 8,666 $ 10,329 $ 1,104
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Basic and Diluted Earnings Per Share $ 0.43 $ 0.46 $ 0.04
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Cash Dividends Per Share $ 0.00 $ 0.00 $ 0.00
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STURM, RUGER & COMPANY, INC.
Statements of Cash Flows
(Dollars in thousands)
Year ended December 31, 2008 2007 2006
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Operating Activities
Net income $ 8,666 $ 10,329 $ 1,104
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation 5,365 4,372 3,852
Impairment of assets -- 2,264 494
Pension plan curtailment charge -- 1,143 --
Gain on sale of assets (95) (7,161) (1,326)
Deferred income taxes (4,639) 2,473 (2,759)
Changes in operating assets and liabilities:
Trade receivables (10,173) 2,371 (2,230)
Inventories 1,358 11,109 24,320
Trade accounts payable and other
Liabilities 5,134 (1,001) 3,023
Product liability (189) 192 (455)
Prepaid expenses and other assets 1,995 (6,128) 4,077
Income taxes 3,760 (643) 119
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Cash provided by operating activities 11,182 19,320 30,219
Investing Activities
Property, plant, and equipment additions (9,488) (4,468) (3,906)
Purchases of short-term investments (45,363) (51,328) (114,585)
Proceeds from sales or maturities of short-term investments 57,309 42,850 114,485
Net proceeds from sale of assets 95 12,542 2,251
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Cash provided by (used for) investing activities 2,553 (404) (1,755)
Financing Activities
Cashless exercise of stock options -- (1,126) --
Repurchase of common stock (10,153) (20,000) (25,205)
Increase in line of credit 1,000 -- --
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Cash used for financing activities (9,153) (21,126) (25,205)
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Increase (Decrease) in cash and cash equivalents 4,582 (2,210) 3,259
Cash and cash equivalents at beginning of year 5,106 7,316 4,057
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Cash and cash equivalents at end of year $ 9,688 $ 5,106 $ 7,316
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