SOUTHPORT, CONNECTICUT –Sturm, Ruger & Company, Inc. (NYSE-RGR), announced today that for the third quarter of 2010, the Company reported net sales of $58.4 million and earnings per share of 32¢, compared with sales of $71.2 million and earnings per share of 37¢ in the third quarter of 2009.
For the nine months ended October 2, 2010, net sales were $191.1 million and earnings were $1.18 per share. For the corresponding period in 2009, net sales were $207.1 million and earnings were $1.13 per share.
Chief Executive Officer Michael O. Fifer made the following comments related to the Company’s results:
* The Company launched the new SR-40 striker-fired pistol late in the third quarter of 2010. New product introductions, including the new SR-40 pistol, remain a strong driver of demand and represented $50.0 million or 27% of sales in the first nine months of 2010.
* Estimated unit sell-through of the Company’s products from distributors to retailers in the third quarter of 2010 decreased by approximately 7% from both the third quarter of 2009 and the second quarter of 2010. NICS checks increased 6% from the third quarter of 2009 and 2% from the second quarter of 2010, indicating that the Company’s share of total firearms retail transactions (new and used firearms) may have declined during the quarter.
* The incoming order rate in the third quarter of 2010 increased significantly from the second quarter of 2010 and the third quarter of 2009.
* Cash generated from operations during the first nine months of 2010 was $23.5 million. At the end of the third quarter of 2010, our cash and equivalents and short-term investments totaled $53.0 million. Our current ratio is 3.7 to 1 and we have no debt.
* During the first nine months of 2010, capital expenditures totaled $16.4 million, much of it related to tooling and equipment for new products. We expect to invest approximately $20 million for capital expenditures during 2010.
* During the third quarter of 2010, the Company repurchased 412,000 shares of its common stock for $5.7 million in the open market. The average price per share repurchased was $13.83. These repurchased shares represented 2.1% of the outstanding shares as of the beginning of the third quarter of 2010 and were funded with cash on hand. As of the end of the third quarter of 2010, $4.3 million remains available for future stock repurchases.
* At the end of the third quarter of 2010, stockholders’ equity was $109 million, which equates to a book value of $5.77 per share, of which $2.82 per share was cash and equivalents and short-term investments.
