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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)

October 30, 2024

 

STURM, RUGER & COMPANY, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

(State or Other Jurisdiction of Incorporation)

001-10435

(Commission File Number)

06-0633559

(IRS Employer Identification Number)

 

One Lacey Place, Southport, Connecticut 06890
(Address of Principal Executive Offices) (Zip Code)

 

(203) 259-7843

Registrant’s telephone number, including area code

 

N/A

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock RGR NYSE

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

1 

 

Item 2.02Results of Operations and Financial Condition

 

On October 30, 2024, the Company issued a press release to stockholders and other interested parties regarding financial results for the third quarter ended September 28, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

 

The information in this Current Report on Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01Financial Statements and Exhibits

 

Exhibit No. Description
   
99.1 Press release of Sturm, Ruger & Company, Inc., dated October 30, 2024, reporting the financial results for the third quarter ended September 28, 2024.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

 

     STURM, RUGER & COMPANY, INC.
       
       
       
       
       
  By: /S/ Thomas A. Dineen
    Name: Thomas A. Dineen
    Title: Principal Financial Officer,
       Principal Accounting Officer,
       Senior Vice President, Treasurer and
      Chief Financial Officer

 

 

Dated: October 30, 2024

 

 

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EXHIBIT 99.1

Ruger-logo_final_lg.jpg

 

Corp_Fifer_Ltrhd_2012.jpg

 

 

FOR IMMEDIATE RELEASE

 

STURM, RUGER & COMPANY, INC. REPORTS THIRD QUARTER

DILUTED EARNINGS OF 28¢ PER SHARE AND

DECLARES QUARTERLY DIVIDEND OF 11¢ PER SHARE

 

SOUTHPORT, CONNECTICUT, October 30, 2024--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.

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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’.”

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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:

 

othe payment of $10.0 million of quarterly dividends, and

 

o$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.

5 

 

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.

 

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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 

 

7 

 

 

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 

 

8 

 

 

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 

 

9 

 

 

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 

 

 

10 

 

 

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% 

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Oct. 30, 2024
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Entity File Number 001-10435
Entity Registrant Name STURM, RUGER & COMPANY, INC.
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Entity Tax Identification Number 06-0633559
Entity Incorporation, State or Country Code DE
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