Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that
for the second quarter of 2024, net sales were $130.8 million and
diluted earnings were 47¢ per share. For the corresponding period
in 2023, net sales were $142.8 million and diluted earnings were
91¢ per share.
For the six months ended June 29, 2024, net sales were $267.6
million and diluted earnings were 87¢ per share. For the
corresponding period in 2023, net sales were $292.3 million and
diluted earnings were $1.72 per share.
The Company also announced today that its Board of Directors
declared a dividend of 19¢ per share for the second quarter for
stockholders of record as of August 15, 2024, payable on August 30,
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
second quarter of 2024, “Although consumer demand in the firearms
market declined from the second quarter of last year, the estimated
sell-through of our products from our independent distributors to
retailers bucked this trend and increased during the same period.
This growth was primarily driven by the demand for many of our
recently introduced products, including:
- American Rifle Generation II family of rifles,
- Marlin lever-action rifles, including the 1895 Dark Series and
the 336 models,
- LC Carbine chambered in .45 Auto,
- 75th Anniversary Mark IV Target pistol,
- 75th Anniversary 10/22 rifles,
- 75th Anniversary LCP MAX pistol, and
- Mini-14 rifle with side-folding stock.
Further, the industry has recognized many of these innovative
products with awards and accolades, including the recently
announced Industry Choice Awards for:
- Lever Gun of the Year (Marlin Dark Series Model 1895),
- Carbine of the Year (LC Carbine in .45 Auto), and
- High Overall Rifle of the Year (Ruger American Rifle Gen II
Ranch).
We look forward to adding to this success with an exciting new
product and more product derivatives that we plan to launch in the
second half of the year.”
Mr. Killoy continued, “Earlier this year, we reorganized some
aspects of our business and implemented a reduction in force to
achieve greater efficiency, productivity, and flexibility
throughout our organization. We are starting to realize the
benefits of these actions. Despite a reduction in headcount, second
quarter production increased 18% from the first quarter. We expect
further improvements from the initiatives we are currently pursuing
and we continue to look for additional opportunities to reduce or
eliminate inefficiencies in every part of our business.”
Mr. Killoy concluded, “We remain focused on the long-term goal
of creating shareholder value. Our disciplined pricing and
promotion strategy may not always benefit current period sales and
profitability, but instead enhances our long-term performance and
promotes consistency throughout the distribution channel. Allowing
both independent distributors and retailers to confidently invest
in our inventory is essential to Ruger’s long-term success and
leadership in the volatile firearms market. We continue to leverage
our strong, debt-free balance sheet. In the first half of 2024, we
repurchased 477,917 shares of our stock at an average cost of
$42.41 per share, representing approximately 3% of our outstanding
shares.”
Mr. Killoy made the following observations related to the
Company’s second quarter 2024 performance:
- The estimated unit sell-through of the Company’s products from
the independent distributors to retailers increased 1% in both the
second quarter and first half of 2024 compared to the prior year
periods. For the same periods, NICS background checks, as adjusted
by the National Shooting Sports Foundation, decreased 8% and 6%,
respectively.
- 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 $79.7 million or 31% of firearm sales in
the first half of 2024, an increase from $63.3 million or 23% of
sales in the first half of 2023. New product sales include only
major new products that were introduced in the past two years.
- Our profitability in the second quarter of 2024 improved from
the first quarter of 2024 as we increased production, despite the
reduction in headcount.
- Compared to the second quarter of 2023, the Company’s and
distributor’s finished goods inventories have been reduced by
13,300 units and 88,700 units, respectively, providing an
opportunity for replenishment in the second half of the year.
- Cash provided by operations during the first half of 2024 was
$26.1 million. At June 29, 2024, our cash and short-term
investments totaled $105.6 million. Our current ratio is 4.8 to 1
and we have no debt.
- In the first half of 2024, capital expenditures totaled $10.4
million related to new product introductions, upgrades to our
manufacturing equipment, and facilities. We expect our 2024 capital
expenditures to approximate $20 million.
- In the first half of 2024, the Company returned $27.1 million
to its shareholders through:
- the payment of $6.8 million of quarterly dividends, and
- $20.3 million through the repurchase of shares of its common
stock in the open market.
- At June 29, 2024, stockholders’ equity was $321.5 million,
which equates to a book value of $18.90 per share, of which $6.21
per share was cash and short-term investments.
Today, the Company filed its Quarterly Report on Form 10-Q for
the second quarter of 2024. The financial statements included in
this Quarterly Report on Form 10-Q are attached to this press
release.
Tomorrow, August 1, 2024, Sturm, Ruger will host a webcast at
9:00 a.m. ET to discuss the second quarter 2024 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 second 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)
June 29, 2024
December 31, 2023
Assets
Current Assets
Cash
$
7,153
$
15,174
Short-term investments
98,490
102,485
Trade receivables, net
56,119
59,864
Gross inventories
145,839
150,192
Less LIFO reserve
(66,854
)
(64,262
)
Less excess and obsolescence reserve
(5,653
)
(6,120
)
Net inventories
73,332
79,810
Prepaid expenses and other current
assets
16,857
14,062
Total Current Assets
251,951
271,395
Property, plant and equipment
471,440
462,397
Less allowances for depreciation
(400,126
)
(390,863
)
Net property, plant and equipment
71,314
71,534
Deferred income taxes
14,727
11,976
Other assets
38,711
43,912
Total Assets
$
376,703
$
398,817
STURM, RUGER & COMPANY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) (Continued)
(Dollars in thousands, except per share
data)
June 29, 2024
December 31, 2023
Liabilities and Stockholders’
Equity
Current Liabilities
Trade accounts payable and accrued
expenses
$
29,583
$
31,708
Contract liabilities with customers
-
149
Product liability
314
634
Employee compensation and benefits
16,692
24,660
Workers’ compensation
5,432
6,044
Total Current Liabilities
52,021
63,195
Employee compensation
1,252
1,685
Product liability accrual
61
46
Lease liability
1,903
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, 17,011,666
outstanding
2023 – 24,437,020 issued, 17,458,620
outstanding
24,468
24,437
Additional paid-in capital
48,346
46,849
Retained earnings
426,551
418,058
Less: Treasury stock – at cost
2024 – 7,456,317 shares 2023 – 6,978,400
shares
(177,899
)
(157,623
)
Total Stockholders’ Equity
321,466
331,721
Total Liabilities and Stockholders’
Equity
$
376,703
$
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
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Net firearms sales
$
129,829
$
141,853
$
265,837
$
290,746
Net castings sales
932
951
1,744
1,511
Total net sales
130,761
142,804
267,581
292,257
Cost of products sold
101,607
104,656
209,024
215,623
Gross profit
29,154
38,148
58,557
76,634
Operating expenses:
Selling
9,484
9,808
19,190
19,033
General and administrative
10,698
9,925
22,864
22,165
Total operating expenses
20,182
19,733
42,054
41,198
Operating income
8,972
18,415
16,503
35,436
Other income:
Interest income
1,329
1,479
2,684
2,693
Interest expense
(25
)
(30
)
(42
)
(55
)
Other income, net
179
369
357
651
Total other income, net
1,483
1,818
2,999
3,289
Income before income taxes
10,455
20,233
19,502
38,725
Income taxes
2,191
4,048
4,154
8,190
Net income and comprehensive income
$
8,264
$
16,185
$
15,348
$
30,535
Basic earnings per share
$
0.48
$
0.91
$
0.88
$
1.73
Diluted earnings per share
$
0.47
$
0.91
$
0.87
$
1.72
Weighted average number of common shares
outstanding - Basic
17,343,341
17,714,471
17,388,509
17,696,579
Weighted average number of common shares
outstanding - Diluted
17,618,508
17,826,205
17,615,244
17,798,521
Cash dividends per share
$
0.16
$
0.32
$
0.39
$
5.74
STURM, RUGER & COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (UNAUDITED)
(Dollars in thousands)
Six Months Ended
June 29, 2024
July 1, 2023
Operating Activities
Net income
$
15,348
$
30,535
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization
11,137
13,046
Stock-based compensation
2,152
1,948
Excess and obsolescence inventory
reserve
(467
)
-
Gain on sale of assets
-
(2
)
Deferred income taxes
(2,751
)
(3,950
)
Changes in operating assets and
liabilities:
Trade receivables
3,745
12,383
Inventories
6,945
(4,423
)
Trade accounts payable and accrued
expenses
(2,770
)
(5,654
)
Contract liability with customers
(149
)
(931
)
Employee compensation and benefits
(8,469
)
(8,882
)
Product liability
(305
)
199
Prepaid expenses, other assets and other
liabilities
1,669
(11,285
)
Income taxes payable
-
(1,171
)
Cash provided by operating activities
26,085
21,813
Investing Activities
Property, plant and equipment
additions
(10,414
)
(4,873
)
Proceeds from sale of assets
-
3
Purchases of short-term investments
(76,409
)
(117,977
)
Proceeds from maturities of short-term
investments
80,404
150,898
Cash (used for) provided by investing
activities
(6,419
)
28,051
Financing Activities
Remittance of taxes withheld from
employees related to share-based compensation
(624
)
(2,156
)
Repurchase of common stock
(20,276
)
-
Dividends paid
(6,787
)
(101,425
)
Cash used for financing activities
(27,687
)
(103,581
)
Decrease in cash and cash equivalents
(8,021
)
(53,717
)
Cash and cash equivalents at beginning of
period
15,174
65,173
Cash and cash equivalents at end of
period
$
7,153
$
11,456
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
Six Months Ended
June 29, 2024
July 1, 2023
June 29, 2024
July 1, 2023
Net income
$
8,264
$
16,185
$
15,348
$
30,535
Income tax expense
2,191
4,048
4,154
8,190
Depreciation and amortization expense
5,304
6,510
11,137
13,046
Interest income
(1,329
)
(1,479
)
(2,684
)
(2,693
)
Interest expense
25
30
42
55
EBITDA
$
14,455
$
25,294
$
27,997
$
49,133
EBITDA margin
11.1
%
17.7
%
10.5
%
16.8
%
Net income margin
6.3
%
11.3
%
5.7
%
10.4
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240731056888/en/
Sturm, Ruger & Company, Inc. One Lacey Place Southport, CT
06890 www.ruger.com 203-259-7843
Sturm Ruger (NYSE:RGR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Sturm Ruger (NYSE:RGR)
Historical Stock Chart
From Sep 2023 to Sep 2024