Sturm, Ruger & Company, Inc. Reports Third Quarter Diluted Earnings of 28¢ Per Share and Declares Quarterly Dividend of 11¢ Per Share
For the nine months ended
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
Chief Executive Officer
- 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.”
-
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 . AtSeptember 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.
-
the payment of
-
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,
The Quarterly Report on Form 10-Q for the third quarter of 2024 is available on the
About
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.
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CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
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(Dollars in thousands) |
||||||
|
|
|
||||
|
|
|
||||
|
|
|
||||
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 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued) (Dollars in thousands, except per share data) |
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|
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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 |
|
- |
|
|
- |
|
|
|
|
||||
|
|
|
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Stockholders’ Equity |
|
|
||||
Common Stock, non-voting, par value $1: |
|
|
||||
Authorized shares 50,000; none issued |
|
- |
|
|
- |
|
Common Stock, par value $1: |
|
|
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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: |
|
|
|
|
|
|
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 |
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED) (Dollars in thousands, except per share data) |
||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
|
|
|
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|
|
|
|
|
||||||||
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 |
|
|
|
16,847,866 |
|
|
17,722,682 |
|
|
17,207,632 |
|
|
17,705,280 |
|
|
17,137,065 |
|
|
17,889,089 |
|
|
17,455,265 |
|
|
17,828,710 |
|
|
|
|
|
|
|
||||||||
Cash dividends per share |
$ |
0.19 |
|
$ |
0.36 |
|
$ |
0.58 |
|
$ |
6.10 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands) |
||||||
|
Nine Months Ended |
|||||
|
|
|
||||
|
|
|
||||
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
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
|
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|
Three Months Ended |
Nine Months Ended |
||||||||||
|
|
|
|
|
||||||||
|
|
|
|
|||||||||
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/
One
www.ruger.com
203-259-7843
Source: