EXHIBIT 99.1
[LOGO] STURM, RUGER & COMPANY, INC.
SOUTHPORT, CONNECTICUT 06890 U.S.A.
FOR IMMEDIATE RELEASE
STURM, RUGER & COMPANY, INC. REPORTS FIRST QUARTER EARNINGS
OF 30(cent) PER SHARE AND DECLARES DIVIDEND OF 8.6(cent) PER SHARE
SOUTHPORT, CONNECTICUT, April 28, 2009--Sturm, Ruger & Company, Inc.
(NYSE-RGR), announced today that for the first quarter of 2009, the Company
reported net sales of $63.5 million and earnings per share of $0.30, compared
with sales of $42.5 million and earnings per share of $.07 in the first quarter
of 2008.
The Company also announced today that its Board of Directors declared a
dividend of 8.6(cent) per share for the first quarter, for shareholders of
record as of May 15, 2009, payable on May 29, 2009.
Chief Executive Officer Michael O. Fifer made the following comments
related to the first quarter of 2009:
o The level of demand for our products during the first quarter of 2009 has
been unusually high, with more than 500,000 units ordered.
o Our firearms sales grew 55.5% from the first quarter of 2008 and 8.7% from
the fourth quarter of 2008.
o Our firearms unit production grew 69.3% from the first quarter of 2008 and
25.6% from the fourth quarter of 2008.
o Our backlog grew to 458,900 units and $136.3 million at the end of the
first quarter of 2009, from 175,900 units and $47.8 million at the end of
2008.
o We had a successful launch of a new product platform, the LCR, our
Lightweight, Compact Revolver.
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o Cash generated from operations during the first quarter of 2009 was $10.4
million. At the end of the first quarter of 2009, our cash, cash
equivalents and short-term investments totaled $33.9 million. Our pre-LIFO
working capital of $96.4 million, less the LIFO reserve of $44.1 million,
resulted in working capital of $52.3 million and a current ratio of 2.9 to
1. The Company has no debt.
o During the first quarter of 2009, capital expenditures totaled $3.7
million. We expect to invest approximately $12 million for capital
expenditures during 2009.
Chief Executive Officer Michael O. Fifer issued a letter to Ruger
shareholders today, discussing the market conditions, manufacturing, operating
results, and the first quarter dividend. Also today, the Company filed its
Quarterly Report on Form 10-Q for the first quarter of 2009. The financial
statements included in this Quarterly Report on Form 10-Q are attached to this
press release.
Both the Quarterly Report on Form 10-Q and the letter to Ruger
shareholders on Form 8-K are available on the SEC website at www.sec.gov and the
Ruger website at www.ruger.com/corporate/. Investors are urged to read the
complete Form 10-Q and the letter to shareholders to ensure that they have
adequate information to make informed investment judgments.
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 manufacturing facilities
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.
Condensed Balance Sheets (Unaudited)
(Dollars in thousands, except share data)
April 4, 2009 December 31, 2008
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Assets
Current Assets
Cash and cash equivalents $ 3,922 $ 9,688
Short-term investments 29,978 18,558
Trade receivables, net 25,611 25,809
Gross inventories 55,208 59,846
Less LIFO reserve (44,089) (44,338)
Less excess and obsolescence reserve (2,807) (3,569)
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Net inventories 8,312 11,939
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Deferred income taxes 5,744 6,400
Prepaid expenses and other current assets 5,954 3,374
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Total current assets 79,521 75,768
Property, plant and equipment 128,449 125,026
Less allowances for depreciation (100,191) (98,807)
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Net property, plant and equipment 28,258 26,219
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Deferred income taxes 7,785 7,743
Other assets 2,968 3,030
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Total Assets $ 118,532 $ 112,760
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STURM, RUGER & COMPANY, INC.
April 4, 2009 December 31, 2008
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Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable and accrued expenses $ 10,179 $ 10,235
Product liability 531 1,051
Employee compensation and benefits 8,466 7,994
Workers' compensation 4,818 5,067
Income taxes payable 3,200 4,171
Line of credit -- 1,000
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Total current liabilities 27,194 29,518
Accrued pension liability 16,918 16,946
Product liability accrual 798 693
Contingent liabilities - Note 8 -- --
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
2009 - 22,798,732 issued,
19,044,921 outstanding
2008 - 22,798,732 issued,
19,047,323 outstanding 22,799 22,799
Additional paid-in capital 4,668 2,442
Retained earnings 99,307 93,500
Less: Treasury stock - at cost
2009 - 3,753,820 shares
2008 - 3,751,419 shares (30,167) (30,153)
Accumulated other comprehensive loss (22,985) (22,985)
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Total Stockholders' Equity 73,622 65,603
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Total Liabilities and Stockholders' Equity $ 118,532 $ 112,760
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STURM, RUGER & COMPANY, INC.
Condensed Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
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April 4, 2009 March 29, 2008
---------------------------------
Net firearms sales $ 62,227 $ 40,030
Net castings sales 1,302 2,476
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Total net sales 63,529 42,506
Cost of products sold 44,003 31,851
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Gross profit 19,526 10,655
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Expenses:
Selling 5,445 4,388
General and administrative 4,147 3,941
Other operating expenses, net 500 --
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Total operating expenses 10,092 8,329
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Operating income 9,434 2,326
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Other income:
Interest (expense) income , net (18) 163
Other (expense), net (50) (147)
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Total other (expense) income, net (68) 16
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Income before income taxes 9,366 2,342
Income taxes 3,559 890
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Net income $ 5,807 $ 1,452
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Earnings per share
Basic $ 0.30 $ 0.07
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Diluted $ 0.30 $ 0.07
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Average shares outstanding
Basic 19,045 20,572
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Diluted 19,175 20,606
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STURM, RUGER & COMPANY, INC.
Condensed Statements of Cash Flows (Unaudited)
(Dollars in thousands)
Three Months Ended
---------------------------------
April 4, 2009 March 29, 2008
---------------------------------
Operating Activities
Net income $ 5,807 $ 1,452
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation 1,662 1,117
Deferred income taxes 614 (420)
Changes in operating assets and liabilities:
Trade receivables 198 (2,698)
Inventories 3,627 34
Trade accounts payable and accrued expenses 1,087 2,222
Product liability (415) (99)
Prepaid expenses, other assets and other liabilities (1,240) (2,052)
Income taxes (971) 1,006
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Cash provided by operating activities 10,369 562
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Investing Activities
Property, plant and equipment additions (3,701) (1,932)
Purchases of short-term investments (25,979) (6,666)
Proceeds from maturities of short-term investments 14,559 6,750
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Cash used for investing activities (15,121) (1,848)
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Financing Activities
Repayment of line of credit balance (1,000) --
Repurchase of common stock (14) --
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Cash used for financing activities (1,014) --
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Decrease in cash and cash equivalents (5,766) (1,286)
Cash and cash equivalents at beginning of period 9,688 5,106
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Cash and cash equivalents at end of period $ 3,922 $ 3,820
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