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)

November 1, 2023

STURM, RUGER & COMPANY, INC.

(Exact Name of Registrant as Specified in its Charter)

DELAWARE

001-10435

06-0633559

(State or Other Jurisdiction of

(Commission File Number)

(IRS Employer Identification

Incorporation)

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.

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Item 2.02 Results of Operations and Financial Condition

On November 1, 2023, the Company issued a press release to stockholders and other interested parties regarding financial results for the third quarter ended September 30, 2023. 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 9.01

Financial Statements and Exhibits

Exhibit No.

Description

99.1

Press release of Sturm, Ruger & Company, Inc., dated November 1, 2023, reporting the

financial results for the third quarter ended September 30, 2023.

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: November 1, 2023

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EXHIBIT 99.1

FOR IMMEDIATE RELEASE

STURM, RUGER & COMPANY, INC. REPORTS THIRD QUARTER

DILUTED EARNINGS OF 42¢ PER SHARE AND

DECLARES QUARTERLY DIVIDEND OF 17¢ PER SHARE

SOUTHPORT, CONNECTICUT, November 1, 2023--Sturm, Ruger & Company, Inc. (NYSE- RGR) announced today that for the third quarter of 2023, net sales were $120.9 million and diluted earnings were 42¢ per share. For the corresponding period in 2022, net sales were $139.4 million and diluted earnings were $1.03 per share.

For the nine months ended September 30, 2023, net sales were $413.2 million and diluted earnings were $2.13 per share. For the corresponding period in 2022, net sales were $446.6 million and diluted earnings were $3.90 per share.

The Company also announced today that its Board of Directors declared a dividend of 17¢ per share for the third quarter for stockholders of record as of November 15, 2023, payable on November 29, 2023. 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 third quarter of 2023, "Our third quarter sales and profitability decreased from last year, as overall firearms demand declined, creating a challenging, promotion-rich marketplace. We remained focused on the long-term, offering only modest promotions and adjusting the production rates on various product lines to better match demand, which reduced our overall production. While our decreased production hindered current period profitability, it resulted in only a nominal increase in our inventories and essentially flat distributor inventories during this seasonally slow quarter. Our debt-free balance sheet and diverse product offerings have us well positioned to capitalize when the firearms market rebounds."

Mr. Killoy continued, "Our strategy remains unchanged as we stay focused on long-term shareholder value. To that end, new product development continues to be our priority. Earlier this week, we introduced the Ruger-made Marlin Dark Series lever-action rifles that will appeal to a broad variety of firearms enthusiasts interested in a more modern look and features to enhance the rifles' classic design. In addition to our traditional new product introductions in 2023, including the Marlin 336 and 1894 Classic lever-action rifles and the Super Wrangler revolver, we continue to offer a variety of limited run distributor exclusive models across many of our product lines. We are also capitalizing on the opportunity to offer new Ruger pistols in California for the first time in 10 years, brought about by some recent changes in the pistol requirements. To date, four Ruger pistols were added to the California roster of certified handguns, including a Mark IV pistol, SR22 pistol, LCP pistol, and MAX-9 pistol. We look forward to introducing exciting new firearms in both the Ruger and Marlin brands and offering additional pistols to the California market in the coming months."

Mr. Killoy concluded with an update from last week's 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 Columbus, Ohio. We were named "Firearms Manufacturer of the Year", and awarded "Best New Rifle" and "Best New Overall Product" for the Marlin Model 336. This was a great testament to our 1,800 loyal and hard-working associates."

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Mr. Killoy made the following observations related to the Company's third quarter 2023

performance:

  • The estimated unit sell-through of the Company's products from independent distributors to retailers decreased 8% in the first nine months of 2023 compared to the prior year period. For the same period, NICS background checks, as adjusted by the National Shooting Sports Foundation, decreased 7%.
  • Sales of new products, including the MAX-9 pistol, LCP MAX pistol, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, Super Wrangler revolver, and the Security-380 pistol, represented $90.5 million or 22.7% of firearm sales in the first nine months of 2023. New product sales include only major new products that were introduced in the past two years.
  • Our profitability declined in the third quarter of 2023 from the third quarter of 2022 as our gross margin decreased from 28% to 20%. The lower margin was driven by:
    1. unfavorable deleveraging of fixed costs resulting from decreased production, o increased sales promotional activity,
      o cost increases in materials, commodities, services, wages, energy, fuel and transportation, and
      o a product mix shift toward products with relatively lower margins.
  • During the third quarter of 2023, the Company's finished goods inventory and distributor inventories of the Company's products increased 16,100 units and 1,000 units, respectively.
  • Cash provided by operations during the nine months of 2023 was $17.3 million. At September 30, 2023, our cash and short-term investments totaled $120 million. Our current ratio is 4.5 to 1 and we have no debt.
  • In the first nine months of 2023, capital expenditures totaled $11.6 million related to new product introductions and upgrades to our manufacturing equipment and facilities. We expect our 2023 capital expenditures to approximate $20 million.
  • In the first nine months of 2023, the Company returned $107.8 million to its shareholders through the payment of our quarterly dividends and a $5.00 per share special dividend paid in January.
  • At September 30, 2023, stockholders' equity was $335.5 million, which equates to a book value of $18.92 per share, of which $6.77 per share was cash and short-term investments.

Today, the Company filed its Quarterly Report on Form 10-Q for the third quarter of 2023. The

financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

Tomorrow, November 2, 2023, 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 linkor by visiting

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Ruger.com/corporate. Those who wish to ask questions during the webcast will need to pre-registerprior

to the meeting.

The Quarterly Report on Form 10-Q for the third quarter of 2023 is available on the SEC website at

SEC.govand 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 almost 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.

6

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands)

September 30, 2023

December 31, 2022

Assets

Current Assets

$

13,559

$

65,173

Cash

Short-term investments

106,451

159,132

Trade receivables, net

59,899

65,449

Gross inventories

150,021

129,294

Less LIFO reserve

(64,969)

(59,489)

Less excess and obsolescence reserve

(5,781)

(4,812)

Net inventories

79,271

64,993

Prepaid expenses and other current assets

14,780

7,091

Total Current Assets

273,960

361,838

Property, plant and equipment

458,332

447,126

Less allowances for depreciation

(388,531)

(370,273)

Net property, plant and equipment

69,801

76,853

Deferred income taxes

10,167

6,109

Other assets

46,422

39,963

Total Assets

$

400,350

$

484,763

7

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued) (Dollars in thousands, except per share data)

September 30, 2023

December 31, 2022

Liabilities and Stockholders' Equity

Current Liabilities

Trade accounts payable and accrued expenses

$

29,736

$

35,658

Dividends payable

-

88,343

Contract liabilities with customers

1,436

1,031

Product liability

406

235

Employee compensation and benefits

23,142

30,160

Workers' compensation

6,467

6,469

Income taxes payable

-

1,171

Total Current Liabilities

61,187

163,067

Employee compensation

1,484

1,846

Product liability accrual

46

73

Lease liability

2,328

3,039

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,

17,722,682 outstanding

2022 - 24,378,568 issued,

17,664,230 outstanding

24,437

24,378

Additional paid-in capital

45,828

45,075

Retained earnings

410,852

393,097

Less: Treasury stock - at cost

2023 - 6,714,338 shares

2022 - 6,714,338 shares

(145,812)

(145,812)

Total Stockholders' Equity

335,305

316,738

Total Liabilities and Stockholders' Equity

$

400,350

$

484,763

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 30,

October 1,

September 30,

October 1,

2023

2022

2023

2022

Net firearms sales

$120,368

$138,771

$411,114

$444,615

Net castings sales

525

619

2,036

2,003

Total net sales

120,893

139,390

413,150

446,618

Cost of products sold

96,165

100,521

311,788

306,087

Gross profit

24,728

38,869

101,362

140,531

Operating expenses:

Selling

8,669

8,763

27,702

25,828

General and administrative

9,733

10,247

31,898

30,927

Total operating expenses

18,402

19,010

59,600

56,755

Operating income

6,326

19,859

41,762

83,776

Other income:

Interest income

1,454

730

4,147

951

Interest expense

(122)

(88)

(177)

(205)

Other income, net

431

490

1,082

2,092

Total other income, net

1,763

1,132

5,052

2,838

Income before income taxes

8,089

20,991

46,814

86,614

Income taxes

658

2,602

8,848

17,236

Net income and comprehensive income

$ 7,431

$ 18,389

$ 37,966

$ 69,378

Basic earnings per share

$0.42

$1.04

$2.14

$3.93

Diluted earnings per share

$0.42

$1.03

$2.13

$3.90

Weighted average number of common

shares outstanding - Basic

17,722,682

17,668,435

17,705,280

17,643,473

Weighted average number of common

shares outstanding - Diluted

17,889,089

17,825,797

17,828,710

17,770,120

Cash dividends per share

$0.36

$0.47

$6.10

$2.01

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STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollars in thousands)

Nine Months Ended

September 30,

October 1,

2023

2022

Operating Activities

Net income

$ 37,966

$ 69,378

Adjustments to reconcile net income to cash provided by

operating activities:

Depreciation and amortization

19,576

20,120

Stock-based compensation

2,968

5,053

(Gain) loss on sale of assets

(4)

15

Deferred income taxes

(4,058)

(1,908)

Changes in operating assets and liabilities:

Trade receivables

5,550

(4,326)

Inventories

(14,278)

(17,655)

Trade accounts payable and accrued expenses

(5,967)

(5,315)

Contract liability with customers

405

-

Employee compensation and benefits

(8,129)

(11,774)

Product liability

144

(340)

Prepaid expenses, other assets and other liabilities

(15,704)

(2,985)

Income taxes payable

(1,171)

-

Cash provided by operating activities

17,298

50,263

Investing Activities

Property, plant and equipment additions

(11,637)

(17,206)

Proceeds from sale of assets

5

41

Purchases of short-term investments

(141,410)

(200,378)

Proceeds from maturities of short-term investments

194,091

235,041

Cash provided by investing activities

41,049

17,498

Financing Activities

Remittance of taxes withheld from employees related to

share-based compensation

(2,156)

(3,371)

Repurchase of common stock

-

(107)

Dividends paid

(107,805)

(35,474)

Cash used for financing activities

(109,961)

(38,952)

(Decrease) increase in cash and cash equivalents

(51,614)

28,809

Cash and cash equivalents at beginning of period

65,173

21,044

Cash and cash equivalents at end of period

$ 13,559

$ 49,853

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Sturm Ruger & Company Inc. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 21:26:29 UTC.