Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Sturm, Ruger & Company, Inc. Reports 2023 Diluted Earnings of $2.71 Per Share and Declares Dividend of 23¢ Per Share By: Sturm, Ruger & Company, Inc. via Business Wire February 21, 2024 at 17:05 PM EST Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2023 the Company reported net sales of $543.8 million and diluted earnings of $2.71 per share, compared with net sales of $595.8 million and diluted earnings of $4.96 per share in 2022. For the fourth quarter of 2023, net sales were $130.6 million and diluted earnings were 58¢ per share. For the corresponding period in 2022, net sales were $149.2 million and diluted earnings were $1.06 per share. The Company also announced today that its Board of Directors declared a dividend of 23¢ per share for the fourth quarter for stockholders of record as of March 15, 2024, payable on March 28, 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 financial results for the year, “Consumer demand remained soft in 2023, likely dampened by inflationary pressures and rising interest rates, leading to a 9% reduction in sales from the prior year. Nevertheless, we remained disciplined and continued to focus on the long-term – reducing production levels where appropriate and offering only modest promotions on select product families, resisting the temptation to enhance short-term results at the expense of our long-term strategy. Encouraged by our increased quarterly sales and profitability in the fourth quarter, we enter 2024 with a strong, debt-free balance sheet, reduced inventories at our independent distributors, and a full pipeline of new products recently launched into the market and others still under development.” Mr. Killoy continued, “We are celebrating Ruger’s 75th Anniversary in 2024. To honor our proud heritage, we are offering commemorative firearms that will only be available this year, all of which are engraved with our 75th Anniversary logo: A special tribute to Bill Ruger’s first pistol, which launched the Company in 1949, a Mark IV target pistol, featuring a fully adjustable rear sight, an undercut Patridge front sight, and a heavy, tapered barrel, A pair of 10/22 Sporter rimfire carbines, each featuring a stainless steel barrel, silver-finished receiver, polished bolt, and match-sanded butt pad, and An LCP MAX double-stack, ten-round pistol, featuring a stainless steel slide and a silver-anodized aluminum trigger. Also, several special, limited production, editions of other products will be released throughout the year. The first of these is the Diamond Anniversary Limited Edition 1911 Pistol, which features an attractive, finely detailed, laser-engraved slide.” Mr. Killoy remarked, “In addition to these 75th Anniversary models, we have recently introduced several new products that have been met with strong demand and excitement: Ruger American Rifle Generation II, our first update to the American Rifle, which has been tremendously popular since its introduction in 2012. The Generation II models feature a three-position tang safety, a more ergonomic stock, and a spiral fluted barrel. The 60th Anniversary 10/22 Carbine, the Sixth Edition of the Ruger Collector's Series, features a stainless steel barrel and silver-finished receiver paired with a Gray Magpul Hunter X-22 stock, a blackened bolt laser engraved with a unique 60th Anniversary marking, and a red bolt handle and trigger, The Mini-14 with side-folding stock, reminiscent of classic side-folding Mini-14 rifles originally produced in the late-1970s, and The LC Carbine chambered in .45 Auto featuring a threaded barrel, adjustable folding stock, Ruger Rapid Deploy folding sights, and ambidextrous controls.” Mr. Killoy made the following observations related to the Company’s 2023 performance: The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 7% in 2023 compared to the prior year period. For the same period, NICS background checks, as adjusted by the National Shooting Sports Foundation, decreased 4%. The greater reduction in the sell-through of the Company’s products relative to adjusted NICS background checks may be attributable to aggressive promotions, discounts, rebates, and the extension of payment terms offered by our competitors. Sales of new products, including the MAX-9 pistol, Security-380 pistol, Super Wrangler revolver, LCP MAX pistol, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II represented $121.7 million or 23% of firearm sales in 2023, an increase from $78.4 million or 14% of sales in 2022. New product sales include only major new products that were introduced in the past two years. Our profitability declined in 2023 from 2022 as our gross margin decreased from 30% to 25%. The lower margin was driven by unfavorable deleveraging of fixed costs resulting from decreased production and sales, inflationary cost increases in materials, commodities, services, wages, energy, fuel, and transportation, a product mix shift toward products with relatively lower margins that remain in stronger demand, and increased promotional costs, which were partially offset by increased pricing. In 2023, the Company’s finished goods inventory increased 30,700 units and distributor inventories of the Company’s products decreased 39,100 units. Cash provided by operations during 2023 was $33.9 million. At December 31, 2023, our cash and short-term investments totaled $117.7 million. Our current ratio is 4.3 to 1 and we have no debt. In 2023, capital expenditures totaled $15.8 million related to new product introductions and upgrades to our manufacturing equipment and facilities. In 2024, the Company expects capital expenditures to approximate $15 million. In 2023, the Company returned $122.6 million to its shareholders through: the payment of $110.8 million of dividends, including a $5.00 per share special dividend paid in January 2023, and the repurchase of 264,062 shares of its common stock in the open market at an average price of $44.71 per share, for a total of $11.8 million. At December 31, 2023, stockholders’ equity was $331.7 million, which equates to a book value of $19.00 per share, of which $6.74 per share was cash and short-term investments. Today, the Company filed its Annual Report on Form 10-K for 2023. The financial statements included in this Annual Report on Form 10-K are attached to this press release. On Thursday, February 22, 2024, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the fourth quarter and year-end 2023 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 Annual Report on Form 10-K for 2023 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K 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. Consolidated Balance Sheets (Dollars in thousands, except per share data) December 31, 2023 2022 Assets Current Assets Cash and cash equivalents $ 15,174 $ 65,173 Short-term investments 102,485 159,132 Trade receivables, net 59,864 65,449 Gross inventories 150,192 129,294 Less LIFO reserve (64,262 ) (59,489 ) Less excess and obsolescence reserve (6,120 ) (4,812 ) Net inventories 79,810 64,993 Prepaid expenses and other current assets 14,062 7,091 Total Current Assets 271,395 361,838 Property, plant and equipment 462,397 447,126 Less allowances for depreciation (390,863 ) (370,273 ) Net property, plant and equipment 71,534 76,853 Deferred income taxes 11,976 6,109 Other assets 43,912 39,963 Total Assets $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Balance Sheets (Continued) (Dollars in thousands, except per share data) December 31, 2023 2022 Liabilities and Stockholders’ Equity Current Liabilities Trade accounts payable and accrued expenses $ 31,708 $ 35,658 Dividends payable - 88,343 Contract liabilities with customers 149 1,031 Product liability 634 235 Employee compensation and benefits 24,660 30,160 Workers’ compensation 6,044 6,469 Income taxes payable - 1,171 Total Current Liabilities 63,195 163,067 Lease liability 2,170 3,039 Employee compensation 1,685 1,846 Product liability accrual 46 73 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 2023 – 24,437,020 issued, 17,458,620 outstanding 2022 – 24,378,568 issued, 17,664,230 outstanding 24,437 24,378 Additional paid-in capital 46,849 45,075 Retained earnings 418,058 393,097 Less: Treasury stock – at cost 2023 – 6,978,400 shares 2022 – 6,714,338 shares (157,623 ) (145,812 ) Total Stockholders’ Equity 331,721 316,738 Total Liabilities and Stockholders’ Equity $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data) Year ended December 31, 2023 2022 2021 Net firearms sales $ 540,746 $ 593,289 $ 728,141 Net castings sales 3,021 2,553 2,595 Total net sales 543,767 595,842 730,736 Cost of products sold 410,148 415,757 451,179 Gross profit 133,619 180,085 279,557 Operating Expenses (Incomes): Selling 38,788 36,114 33,259 General and administrative 42,752 40,551 43,289 Other operating income, net (5 ) (36 ) (127 ) Total operating expenses 81,535 76,629 76,421 Operating income 52,084 103,456 203,136 Other income: Royalty income 658 837 1,975 Interest income 5,465 2,552 49 Interest expense (205 ) (256 ) (164 ) Other income, net 822 1,690 1,598 Total other income, net 6,740 4,823 3,458 Income before income taxes 58,824 108,279 206,594 Income taxes 10,609 19,947 50,695 Net income and comprehensive income $ 48,215 $ 88,332 $ 155,899 Basic Earnings Per Share $ 2.73 $ 5.00 $ 8.87 Diluted Earnings Per Share $ 2.71 $ 4.96 $ 8.78 Weighted average number of common shares outstanding – Basic 17,676,955 17,648,850 17,585,604 Weighted average number of common shares outstanding – Diluted 17,811,218 17,793,348 17,757,834 Cash Dividends Per Share $ 6.27 $ 2.42 $ 3.36 STURM, RUGER & COMPANY, INC. Consolidated Statements of Cash Flows (In thousands) Year ended December 31, 2023 2022 2021 Operating Activities Net income $ 48,215 $ 88,332 $ 155,899 Adjustments to reconcile net income to cash provided by operating activities, net of effects of acquisition: Depreciation and amortization 22,383 25,789 26,152 Stock-based compensation 3,989 1,671 8,280 Excess and obsolescence inventory reserve 1,308 501 953 Gain on sale of assets (5 ) (36 ) (127 ) Deferred income taxes (5,867 ) (5,573 ) 994 Changes in operating assets and liabilities: Trade receivables 5,585 (8,413 ) 840 Inventories (16,125 ) (21,644 ) (15,726 ) Trade accounts payable and accrued expenses (4,406 ) (640 ) (392 ) Contract liability with customers (882 ) 1,031 (84 ) Employee compensation and benefits (6,469 ) (3,420 ) (5,433 ) Product liability 372 (584 ) (234 ) Prepaid expenses, other assets and other liabilities (13,026 ) (954 ) 1,217 Income taxes receivable/payable (1,171 ) 1,171 - Cash provided by operating activities 33,901 77,231 172,339 Investing Activities Property, plant and equipment additions (15,796 ) (27,730 ) (28,776 ) Purchases of short-term investments (192,627 ) (365,480 ) (681,940 ) Proceeds from maturity of short-term investments 249,274 406,319 602,976 Net proceeds from sale of assets 5 100 203 Cash provided by (used for) investing activities 40,856 13,209 (107,537 ) Financing Activities Dividends paid (110,789 ) (42,718 ) (59,104 ) Repurchase of common stock (11,811 ) (222 ) - Payment of employee withholding tax related to share-based compensation (2,156 ) (3,371 ) (4,801 ) Cash used for financing activities (124,756 ) (46,311 ) (63,905 ) (Decrease) increase in cash and cash equivalents (49,999 ) 44,129 897 Cash and cash equivalents at beginning of year 65,173 21,044 20,147 Cash and cash equivalents at end of year $ 15,174 $ 65,173 $ 21,044 Non-GAAP Financial Measure In an effort to provide investors with additional information regarding its 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 measures may not be comparable to similarly titled 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 its financial performance. Non-GAAP Reconciliation – EBITDA EBITDA (Unaudited, dollars in thousands) Year ended December 31, 2023 2022 Net income $ 48,215 $ 88,332 Income tax expense 10,609 19,947 Depreciation and amortization expense 22,383 25,789 Interest expense 205 256 Interest income (5,465 ) (2,552 ) EBITDA $ 75,947 $ 131,772 EBITDA margin 14.0 % 22.1 % 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’s EBITDA calculation also excludes any one-time non-cash, non-operating expense. View source version on businesswire.com: https://www.businesswire.com/news/home/20240221309557/en/Contacts Sturm, Ruger & Company, Inc. One Lacey Place Southport, CT 06890 www.ruger.com 203-259-7843 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Sturm, Ruger & Company, Inc. Reports 2023 Diluted Earnings of $2.71 Per Share and Declares Dividend of 23¢ Per Share By: Sturm, Ruger & Company, Inc. via Business Wire February 21, 2024 at 17:05 PM EST Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2023 the Company reported net sales of $543.8 million and diluted earnings of $2.71 per share, compared with net sales of $595.8 million and diluted earnings of $4.96 per share in 2022. For the fourth quarter of 2023, net sales were $130.6 million and diluted earnings were 58¢ per share. For the corresponding period in 2022, net sales were $149.2 million and diluted earnings were $1.06 per share. The Company also announced today that its Board of Directors declared a dividend of 23¢ per share for the fourth quarter for stockholders of record as of March 15, 2024, payable on March 28, 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 financial results for the year, “Consumer demand remained soft in 2023, likely dampened by inflationary pressures and rising interest rates, leading to a 9% reduction in sales from the prior year. Nevertheless, we remained disciplined and continued to focus on the long-term – reducing production levels where appropriate and offering only modest promotions on select product families, resisting the temptation to enhance short-term results at the expense of our long-term strategy. Encouraged by our increased quarterly sales and profitability in the fourth quarter, we enter 2024 with a strong, debt-free balance sheet, reduced inventories at our independent distributors, and a full pipeline of new products recently launched into the market and others still under development.” Mr. Killoy continued, “We are celebrating Ruger’s 75th Anniversary in 2024. To honor our proud heritage, we are offering commemorative firearms that will only be available this year, all of which are engraved with our 75th Anniversary logo: A special tribute to Bill Ruger’s first pistol, which launched the Company in 1949, a Mark IV target pistol, featuring a fully adjustable rear sight, an undercut Patridge front sight, and a heavy, tapered barrel, A pair of 10/22 Sporter rimfire carbines, each featuring a stainless steel barrel, silver-finished receiver, polished bolt, and match-sanded butt pad, and An LCP MAX double-stack, ten-round pistol, featuring a stainless steel slide and a silver-anodized aluminum trigger. Also, several special, limited production, editions of other products will be released throughout the year. The first of these is the Diamond Anniversary Limited Edition 1911 Pistol, which features an attractive, finely detailed, laser-engraved slide.” Mr. Killoy remarked, “In addition to these 75th Anniversary models, we have recently introduced several new products that have been met with strong demand and excitement: Ruger American Rifle Generation II, our first update to the American Rifle, which has been tremendously popular since its introduction in 2012. The Generation II models feature a three-position tang safety, a more ergonomic stock, and a spiral fluted barrel. The 60th Anniversary 10/22 Carbine, the Sixth Edition of the Ruger Collector's Series, features a stainless steel barrel and silver-finished receiver paired with a Gray Magpul Hunter X-22 stock, a blackened bolt laser engraved with a unique 60th Anniversary marking, and a red bolt handle and trigger, The Mini-14 with side-folding stock, reminiscent of classic side-folding Mini-14 rifles originally produced in the late-1970s, and The LC Carbine chambered in .45 Auto featuring a threaded barrel, adjustable folding stock, Ruger Rapid Deploy folding sights, and ambidextrous controls.” Mr. Killoy made the following observations related to the Company’s 2023 performance: The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 7% in 2023 compared to the prior year period. For the same period, NICS background checks, as adjusted by the National Shooting Sports Foundation, decreased 4%. The greater reduction in the sell-through of the Company’s products relative to adjusted NICS background checks may be attributable to aggressive promotions, discounts, rebates, and the extension of payment terms offered by our competitors. Sales of new products, including the MAX-9 pistol, Security-380 pistol, Super Wrangler revolver, LCP MAX pistol, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II represented $121.7 million or 23% of firearm sales in 2023, an increase from $78.4 million or 14% of sales in 2022. New product sales include only major new products that were introduced in the past two years. Our profitability declined in 2023 from 2022 as our gross margin decreased from 30% to 25%. The lower margin was driven by unfavorable deleveraging of fixed costs resulting from decreased production and sales, inflationary cost increases in materials, commodities, services, wages, energy, fuel, and transportation, a product mix shift toward products with relatively lower margins that remain in stronger demand, and increased promotional costs, which were partially offset by increased pricing. In 2023, the Company’s finished goods inventory increased 30,700 units and distributor inventories of the Company’s products decreased 39,100 units. Cash provided by operations during 2023 was $33.9 million. At December 31, 2023, our cash and short-term investments totaled $117.7 million. Our current ratio is 4.3 to 1 and we have no debt. In 2023, capital expenditures totaled $15.8 million related to new product introductions and upgrades to our manufacturing equipment and facilities. In 2024, the Company expects capital expenditures to approximate $15 million. In 2023, the Company returned $122.6 million to its shareholders through: the payment of $110.8 million of dividends, including a $5.00 per share special dividend paid in January 2023, and the repurchase of 264,062 shares of its common stock in the open market at an average price of $44.71 per share, for a total of $11.8 million. At December 31, 2023, stockholders’ equity was $331.7 million, which equates to a book value of $19.00 per share, of which $6.74 per share was cash and short-term investments. Today, the Company filed its Annual Report on Form 10-K for 2023. The financial statements included in this Annual Report on Form 10-K are attached to this press release. On Thursday, February 22, 2024, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the fourth quarter and year-end 2023 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 Annual Report on Form 10-K for 2023 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K 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. Consolidated Balance Sheets (Dollars in thousands, except per share data) December 31, 2023 2022 Assets Current Assets Cash and cash equivalents $ 15,174 $ 65,173 Short-term investments 102,485 159,132 Trade receivables, net 59,864 65,449 Gross inventories 150,192 129,294 Less LIFO reserve (64,262 ) (59,489 ) Less excess and obsolescence reserve (6,120 ) (4,812 ) Net inventories 79,810 64,993 Prepaid expenses and other current assets 14,062 7,091 Total Current Assets 271,395 361,838 Property, plant and equipment 462,397 447,126 Less allowances for depreciation (390,863 ) (370,273 ) Net property, plant and equipment 71,534 76,853 Deferred income taxes 11,976 6,109 Other assets 43,912 39,963 Total Assets $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Balance Sheets (Continued) (Dollars in thousands, except per share data) December 31, 2023 2022 Liabilities and Stockholders’ Equity Current Liabilities Trade accounts payable and accrued expenses $ 31,708 $ 35,658 Dividends payable - 88,343 Contract liabilities with customers 149 1,031 Product liability 634 235 Employee compensation and benefits 24,660 30,160 Workers’ compensation 6,044 6,469 Income taxes payable - 1,171 Total Current Liabilities 63,195 163,067 Lease liability 2,170 3,039 Employee compensation 1,685 1,846 Product liability accrual 46 73 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 2023 – 24,437,020 issued, 17,458,620 outstanding 2022 – 24,378,568 issued, 17,664,230 outstanding 24,437 24,378 Additional paid-in capital 46,849 45,075 Retained earnings 418,058 393,097 Less: Treasury stock – at cost 2023 – 6,978,400 shares 2022 – 6,714,338 shares (157,623 ) (145,812 ) Total Stockholders’ Equity 331,721 316,738 Total Liabilities and Stockholders’ Equity $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data) Year ended December 31, 2023 2022 2021 Net firearms sales $ 540,746 $ 593,289 $ 728,141 Net castings sales 3,021 2,553 2,595 Total net sales 543,767 595,842 730,736 Cost of products sold 410,148 415,757 451,179 Gross profit 133,619 180,085 279,557 Operating Expenses (Incomes): Selling 38,788 36,114 33,259 General and administrative 42,752 40,551 43,289 Other operating income, net (5 ) (36 ) (127 ) Total operating expenses 81,535 76,629 76,421 Operating income 52,084 103,456 203,136 Other income: Royalty income 658 837 1,975 Interest income 5,465 2,552 49 Interest expense (205 ) (256 ) (164 ) Other income, net 822 1,690 1,598 Total other income, net 6,740 4,823 3,458 Income before income taxes 58,824 108,279 206,594 Income taxes 10,609 19,947 50,695 Net income and comprehensive income $ 48,215 $ 88,332 $ 155,899 Basic Earnings Per Share $ 2.73 $ 5.00 $ 8.87 Diluted Earnings Per Share $ 2.71 $ 4.96 $ 8.78 Weighted average number of common shares outstanding – Basic 17,676,955 17,648,850 17,585,604 Weighted average number of common shares outstanding – Diluted 17,811,218 17,793,348 17,757,834 Cash Dividends Per Share $ 6.27 $ 2.42 $ 3.36 STURM, RUGER & COMPANY, INC. Consolidated Statements of Cash Flows (In thousands) Year ended December 31, 2023 2022 2021 Operating Activities Net income $ 48,215 $ 88,332 $ 155,899 Adjustments to reconcile net income to cash provided by operating activities, net of effects of acquisition: Depreciation and amortization 22,383 25,789 26,152 Stock-based compensation 3,989 1,671 8,280 Excess and obsolescence inventory reserve 1,308 501 953 Gain on sale of assets (5 ) (36 ) (127 ) Deferred income taxes (5,867 ) (5,573 ) 994 Changes in operating assets and liabilities: Trade receivables 5,585 (8,413 ) 840 Inventories (16,125 ) (21,644 ) (15,726 ) Trade accounts payable and accrued expenses (4,406 ) (640 ) (392 ) Contract liability with customers (882 ) 1,031 (84 ) Employee compensation and benefits (6,469 ) (3,420 ) (5,433 ) Product liability 372 (584 ) (234 ) Prepaid expenses, other assets and other liabilities (13,026 ) (954 ) 1,217 Income taxes receivable/payable (1,171 ) 1,171 - Cash provided by operating activities 33,901 77,231 172,339 Investing Activities Property, plant and equipment additions (15,796 ) (27,730 ) (28,776 ) Purchases of short-term investments (192,627 ) (365,480 ) (681,940 ) Proceeds from maturity of short-term investments 249,274 406,319 602,976 Net proceeds from sale of assets 5 100 203 Cash provided by (used for) investing activities 40,856 13,209 (107,537 ) Financing Activities Dividends paid (110,789 ) (42,718 ) (59,104 ) Repurchase of common stock (11,811 ) (222 ) - Payment of employee withholding tax related to share-based compensation (2,156 ) (3,371 ) (4,801 ) Cash used for financing activities (124,756 ) (46,311 ) (63,905 ) (Decrease) increase in cash and cash equivalents (49,999 ) 44,129 897 Cash and cash equivalents at beginning of year 65,173 21,044 20,147 Cash and cash equivalents at end of year $ 15,174 $ 65,173 $ 21,044 Non-GAAP Financial Measure In an effort to provide investors with additional information regarding its 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 measures may not be comparable to similarly titled 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 its financial performance. Non-GAAP Reconciliation – EBITDA EBITDA (Unaudited, dollars in thousands) Year ended December 31, 2023 2022 Net income $ 48,215 $ 88,332 Income tax expense 10,609 19,947 Depreciation and amortization expense 22,383 25,789 Interest expense 205 256 Interest income (5,465 ) (2,552 ) EBITDA $ 75,947 $ 131,772 EBITDA margin 14.0 % 22.1 % 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’s EBITDA calculation also excludes any one-time non-cash, non-operating expense. View source version on businesswire.com: https://www.businesswire.com/news/home/20240221309557/en/Contacts Sturm, Ruger & Company, Inc. One Lacey Place Southport, CT 06890 www.ruger.com 203-259-7843
Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2023 the Company reported net sales of $543.8 million and diluted earnings of $2.71 per share, compared with net sales of $595.8 million and diluted earnings of $4.96 per share in 2022. For the fourth quarter of 2023, net sales were $130.6 million and diluted earnings were 58¢ per share. For the corresponding period in 2022, net sales were $149.2 million and diluted earnings were $1.06 per share. The Company also announced today that its Board of Directors declared a dividend of 23¢ per share for the fourth quarter for stockholders of record as of March 15, 2024, payable on March 28, 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 financial results for the year, “Consumer demand remained soft in 2023, likely dampened by inflationary pressures and rising interest rates, leading to a 9% reduction in sales from the prior year. Nevertheless, we remained disciplined and continued to focus on the long-term – reducing production levels where appropriate and offering only modest promotions on select product families, resisting the temptation to enhance short-term results at the expense of our long-term strategy. Encouraged by our increased quarterly sales and profitability in the fourth quarter, we enter 2024 with a strong, debt-free balance sheet, reduced inventories at our independent distributors, and a full pipeline of new products recently launched into the market and others still under development.” Mr. Killoy continued, “We are celebrating Ruger’s 75th Anniversary in 2024. To honor our proud heritage, we are offering commemorative firearms that will only be available this year, all of which are engraved with our 75th Anniversary logo: A special tribute to Bill Ruger’s first pistol, which launched the Company in 1949, a Mark IV target pistol, featuring a fully adjustable rear sight, an undercut Patridge front sight, and a heavy, tapered barrel, A pair of 10/22 Sporter rimfire carbines, each featuring a stainless steel barrel, silver-finished receiver, polished bolt, and match-sanded butt pad, and An LCP MAX double-stack, ten-round pistol, featuring a stainless steel slide and a silver-anodized aluminum trigger. Also, several special, limited production, editions of other products will be released throughout the year. The first of these is the Diamond Anniversary Limited Edition 1911 Pistol, which features an attractive, finely detailed, laser-engraved slide.” Mr. Killoy remarked, “In addition to these 75th Anniversary models, we have recently introduced several new products that have been met with strong demand and excitement: Ruger American Rifle Generation II, our first update to the American Rifle, which has been tremendously popular since its introduction in 2012. The Generation II models feature a three-position tang safety, a more ergonomic stock, and a spiral fluted barrel. The 60th Anniversary 10/22 Carbine, the Sixth Edition of the Ruger Collector's Series, features a stainless steel barrel and silver-finished receiver paired with a Gray Magpul Hunter X-22 stock, a blackened bolt laser engraved with a unique 60th Anniversary marking, and a red bolt handle and trigger, The Mini-14 with side-folding stock, reminiscent of classic side-folding Mini-14 rifles originally produced in the late-1970s, and The LC Carbine chambered in .45 Auto featuring a threaded barrel, adjustable folding stock, Ruger Rapid Deploy folding sights, and ambidextrous controls.” Mr. Killoy made the following observations related to the Company’s 2023 performance: The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 7% in 2023 compared to the prior year period. For the same period, NICS background checks, as adjusted by the National Shooting Sports Foundation, decreased 4%. The greater reduction in the sell-through of the Company’s products relative to adjusted NICS background checks may be attributable to aggressive promotions, discounts, rebates, and the extension of payment terms offered by our competitors. Sales of new products, including the MAX-9 pistol, Security-380 pistol, Super Wrangler revolver, LCP MAX pistol, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II represented $121.7 million or 23% of firearm sales in 2023, an increase from $78.4 million or 14% of sales in 2022. New product sales include only major new products that were introduced in the past two years. Our profitability declined in 2023 from 2022 as our gross margin decreased from 30% to 25%. The lower margin was driven by unfavorable deleveraging of fixed costs resulting from decreased production and sales, inflationary cost increases in materials, commodities, services, wages, energy, fuel, and transportation, a product mix shift toward products with relatively lower margins that remain in stronger demand, and increased promotional costs, which were partially offset by increased pricing. In 2023, the Company’s finished goods inventory increased 30,700 units and distributor inventories of the Company’s products decreased 39,100 units. Cash provided by operations during 2023 was $33.9 million. At December 31, 2023, our cash and short-term investments totaled $117.7 million. Our current ratio is 4.3 to 1 and we have no debt. In 2023, capital expenditures totaled $15.8 million related to new product introductions and upgrades to our manufacturing equipment and facilities. In 2024, the Company expects capital expenditures to approximate $15 million. In 2023, the Company returned $122.6 million to its shareholders through: the payment of $110.8 million of dividends, including a $5.00 per share special dividend paid in January 2023, and the repurchase of 264,062 shares of its common stock in the open market at an average price of $44.71 per share, for a total of $11.8 million. At December 31, 2023, stockholders’ equity was $331.7 million, which equates to a book value of $19.00 per share, of which $6.74 per share was cash and short-term investments. Today, the Company filed its Annual Report on Form 10-K for 2023. The financial statements included in this Annual Report on Form 10-K are attached to this press release. On Thursday, February 22, 2024, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the fourth quarter and year-end 2023 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 Annual Report on Form 10-K for 2023 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Annual Report on Form 10-K 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. Consolidated Balance Sheets (Dollars in thousands, except per share data) December 31, 2023 2022 Assets Current Assets Cash and cash equivalents $ 15,174 $ 65,173 Short-term investments 102,485 159,132 Trade receivables, net 59,864 65,449 Gross inventories 150,192 129,294 Less LIFO reserve (64,262 ) (59,489 ) Less excess and obsolescence reserve (6,120 ) (4,812 ) Net inventories 79,810 64,993 Prepaid expenses and other current assets 14,062 7,091 Total Current Assets 271,395 361,838 Property, plant and equipment 462,397 447,126 Less allowances for depreciation (390,863 ) (370,273 ) Net property, plant and equipment 71,534 76,853 Deferred income taxes 11,976 6,109 Other assets 43,912 39,963 Total Assets $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Balance Sheets (Continued) (Dollars in thousands, except per share data) December 31, 2023 2022 Liabilities and Stockholders’ Equity Current Liabilities Trade accounts payable and accrued expenses $ 31,708 $ 35,658 Dividends payable - 88,343 Contract liabilities with customers 149 1,031 Product liability 634 235 Employee compensation and benefits 24,660 30,160 Workers’ compensation 6,044 6,469 Income taxes payable - 1,171 Total Current Liabilities 63,195 163,067 Lease liability 2,170 3,039 Employee compensation 1,685 1,846 Product liability accrual 46 73 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 2023 – 24,437,020 issued, 17,458,620 outstanding 2022 – 24,378,568 issued, 17,664,230 outstanding 24,437 24,378 Additional paid-in capital 46,849 45,075 Retained earnings 418,058 393,097 Less: Treasury stock – at cost 2023 – 6,978,400 shares 2022 – 6,714,338 shares (157,623 ) (145,812 ) Total Stockholders’ Equity 331,721 316,738 Total Liabilities and Stockholders’ Equity $ 398,817 $ 484,763 STURM, RUGER & COMPANY, INC. Consolidated Statements of Income and Comprehensive Income (In thousands, except per share data) Year ended December 31, 2023 2022 2021 Net firearms sales $ 540,746 $ 593,289 $ 728,141 Net castings sales 3,021 2,553 2,595 Total net sales 543,767 595,842 730,736 Cost of products sold 410,148 415,757 451,179 Gross profit 133,619 180,085 279,557 Operating Expenses (Incomes): Selling 38,788 36,114 33,259 General and administrative 42,752 40,551 43,289 Other operating income, net (5 ) (36 ) (127 ) Total operating expenses 81,535 76,629 76,421 Operating income 52,084 103,456 203,136 Other income: Royalty income 658 837 1,975 Interest income 5,465 2,552 49 Interest expense (205 ) (256 ) (164 ) Other income, net 822 1,690 1,598 Total other income, net 6,740 4,823 3,458 Income before income taxes 58,824 108,279 206,594 Income taxes 10,609 19,947 50,695 Net income and comprehensive income $ 48,215 $ 88,332 $ 155,899 Basic Earnings Per Share $ 2.73 $ 5.00 $ 8.87 Diluted Earnings Per Share $ 2.71 $ 4.96 $ 8.78 Weighted average number of common shares outstanding – Basic 17,676,955 17,648,850 17,585,604 Weighted average number of common shares outstanding – Diluted 17,811,218 17,793,348 17,757,834 Cash Dividends Per Share $ 6.27 $ 2.42 $ 3.36 STURM, RUGER & COMPANY, INC. Consolidated Statements of Cash Flows (In thousands) Year ended December 31, 2023 2022 2021 Operating Activities Net income $ 48,215 $ 88,332 $ 155,899 Adjustments to reconcile net income to cash provided by operating activities, net of effects of acquisition: Depreciation and amortization 22,383 25,789 26,152 Stock-based compensation 3,989 1,671 8,280 Excess and obsolescence inventory reserve 1,308 501 953 Gain on sale of assets (5 ) (36 ) (127 ) Deferred income taxes (5,867 ) (5,573 ) 994 Changes in operating assets and liabilities: Trade receivables 5,585 (8,413 ) 840 Inventories (16,125 ) (21,644 ) (15,726 ) Trade accounts payable and accrued expenses (4,406 ) (640 ) (392 ) Contract liability with customers (882 ) 1,031 (84 ) Employee compensation and benefits (6,469 ) (3,420 ) (5,433 ) Product liability 372 (584 ) (234 ) Prepaid expenses, other assets and other liabilities (13,026 ) (954 ) 1,217 Income taxes receivable/payable (1,171 ) 1,171 - Cash provided by operating activities 33,901 77,231 172,339 Investing Activities Property, plant and equipment additions (15,796 ) (27,730 ) (28,776 ) Purchases of short-term investments (192,627 ) (365,480 ) (681,940 ) Proceeds from maturity of short-term investments 249,274 406,319 602,976 Net proceeds from sale of assets 5 100 203 Cash provided by (used for) investing activities 40,856 13,209 (107,537 ) Financing Activities Dividends paid (110,789 ) (42,718 ) (59,104 ) Repurchase of common stock (11,811 ) (222 ) - Payment of employee withholding tax related to share-based compensation (2,156 ) (3,371 ) (4,801 ) Cash used for financing activities (124,756 ) (46,311 ) (63,905 ) (Decrease) increase in cash and cash equivalents (49,999 ) 44,129 897 Cash and cash equivalents at beginning of year 65,173 21,044 20,147 Cash and cash equivalents at end of year $ 15,174 $ 65,173 $ 21,044 Non-GAAP Financial Measure In an effort to provide investors with additional information regarding its 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 measures may not be comparable to similarly titled 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 its financial performance. Non-GAAP Reconciliation – EBITDA EBITDA (Unaudited, dollars in thousands) Year ended December 31, 2023 2022 Net income $ 48,215 $ 88,332 Income tax expense 10,609 19,947 Depreciation and amortization expense 22,383 25,789 Interest expense 205 256 Interest income (5,465 ) (2,552 ) EBITDA $ 75,947 $ 131,772 EBITDA margin 14.0 % 22.1 % 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’s EBITDA calculation also excludes any one-time non-cash, non-operating expense. View source version on businesswire.com: https://www.businesswire.com/news/home/20240221309557/en/