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Sturm, Ruger & Company, Inc. Reports 2015 Fully Diluted Earnings of $3.21 Per Share and Declares Dividend of 35¢ Per Share

Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for 2015 the Company reported net sales of $551.1 million and fully diluted earnings of $3.21 per share, compared with net sales of $544.5 million and fully diluted earnings of $1.95 per share in 2014. In the fourth quarter of 2014, the Company recorded an expense of $41.0 million related to the termination and settlement of its defined-benefit pension plans. Excluding this expense, 2014 fully diluted earnings were $3.22 per share.

For the fourth quarter of 2015, net sales were $152.4 million and fully diluted earnings were 88¢ per share. For the corresponding period in 2014, net sales were $122.6 million and the Company realized a fully diluted loss of 77¢ per share. Excluding the aforementioned defined-benefit pension-plan expense, fourth quarter 2014 fully diluted earnings were 53¢ per share.

The Company also announced today that its Board of Directors declared a dividend of 35¢ per share for the fourth quarter, for shareholders of record as of March 11, 2016, payable on March 25, 2016. 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 Michael O. Fifer made the following observations related to the Company's results:

  • After a year of declining demand in 2014, demand rebounded in 2015 to slightly higher levels and followed typical historical seasonal patterns.
  • Inventory of Ruger products declined in the fourth quarter at both the Company and at the independent distributors, supporting our assessment of improving demand.
  • In 2015, sales to the independent distributors and the estimated sell-through of the Company's products from the independent distributors to retailers increased 1% and 7%, respectively, from 2014. The National Instant Criminal Background Check System ("NICS") background checks (as adjusted by the National Shooting Sports Foundation) increased 9% in 2015 from 2014.
  • New products represented $115.4 million or 21% of firearm sales in 2015, compared to $89.4 million or 16% of firearms sales in 2014.
  • Cash generated from operations during 2015 was $113 million. At December 31, 2015, our cash totaled $69 million. Our current ratio is 2.3 to 1 and we have no debt.
  • In 2015, capital expenditures totaled $29 million, a decrease from $46 million in 2014. We expect our 2016 capital expenditures to total approximately $25 million, as we continue to prioritize new product development.
  • In 2015, the Company returned $24 million to its shareholders through:
    • the payment of $21 million of dividends, and
    • the repurchase of 82,100 shares of our common stock in the open market at an average price of $34.57 per share, for a total of $3 million.

Today, the Company filed its Annual Report on Form 10-K for 2015. The financial statements included in this Annual Report on Form 10-K are attached to this press release. - View Release
Tomorrow, February 25, 2016, Sturm, Ruger will host a webcast at 9:00 a.m. ET to discuss the 2015 operating results. Interested parties can access the webcast at www.ruger.com/corporate or by dialing 866-515-2911, participant code 25263783.

The Annual Report on Form 10-K is available on the SEC website at www.sec.gov and the Ruger website at www.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.