-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IGo1b0wMhul88XIz7djOvPJz0Y6uUrAJmrgqd77laO2t14ylaDdgiHg2B8U4u5Yx Kyt/b7njE2OYWA1vw4vdXg== 0000950123-03-011545.txt : 20031021 0000950123-03-011545.hdr.sgml : 20031021 20031021152930 ACCESSION NUMBER: 0000950123-03-011545 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031020 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031021 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STURM RUGER & CO INC CENTRAL INDEX KEY: 0000095029 STANDARD INDUSTRIAL CLASSIFICATION: ORDNANCE & ACCESSORIES, (NO VEHICLES/GUIDED MISSILES) [3480] IRS NUMBER: 060633559 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10435 FILM NUMBER: 03949785 BUSINESS ADDRESS: STREET 1: 1 LACEY PLACE CITY: SOUTHPORT STATE: CT ZIP: 06490 BUSINESS PHONE: 2032597843 MAIL ADDRESS: STREET 2: 1 LACEY PLACE CITY: SOUTHPORT STATE: CT ZIP: 06490 8-K 1 y90864ke8vk.txt STURM, RUGER & COMPANY, INC. 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 20, 2003 STURM, RUGER & COMPANY, INC. (Exact Name of Registrant as Specified in its Charter) DELAWARE 001-10435 06-0633559 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification Number) ONE LACEY PLACE, SOUTHPORT, CONNECTICUT 06890 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (203) 259-7843 Page 1 of 10 ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits Description ------------ ----------- 99.1 Press release of Sturm, Ruger & Company, Inc., dated October 20, 2003, reporting the financial results for the third quarter and nine months ended September 30, 2003.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 20, 2003, the Company issued a press release to stockholders and other interested parties regarding financial results for the third quarter and nine months ended September 30, 2003. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated herein by reference. 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, Treasurer and Chief Financial Officer Dated: October 20, 2003 2 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION 99.1 Press release of Sturm, Ruger & Company, Inc., dated October 20, 2003, reporting the financial results for the third quarter and nine months ended September 30, 2003.
3 EX-99.1 3 y90864kexv99w1.txt PRESS RELEASE EXHIBIT 99.1 (STURM, RUGER LOGO) STURM, RUGER & Company, Inc. Southport, Connecticut 06890 U.S.A. ALL RUGER FIREARMS ARE DESIGNED AND MANUFACTURED IN OUR OWN FACTORIES IN THE UNITED STATES OF AMERICA FOR IMMEDIATE RELEASE For further information contact: William B. Ruger, Jr. 603-863-3300 Stephen L. Sanetti 203-259-7843 Thomas A. Dineen 203-259-7843 STURM, RUGER & COMPANY, INC. REPORTS THIRD QUARTER EARNINGS SOUTHPORT, CONNECTICUT, October 20, 2003--Sturm, Ruger & Company, Inc. (NYSE-RGR), the nation's largest producer of firearms, today reported third quarter net sales declined slightly to $36.8 million compared to $38.0 million in the third quarter of 2002. However, net income for the quarter ended September 30, 2003 increased to $3.9 million or $0.14 per share versus $1.4 million or $0.05 per share in the comparable quarter of 2002. For the nine months ended September 30, 2003, net sales were $109.8 million and net income was $9.4 million or $0.35 per share. For the corresponding period in 2002, net sales were $126.3 million and net income was $8.8 million or $0.33 per share. (MORE) 4 Sturm, Ruger Earnings page 2 Included in the results of the third quarter and nine months ended September 30, 2003, is the pretax gain of $5.9 million or $0.13 per share after-tax from the sale of certain non-manufacturing real estate in Arizona, known as the Single-Six Ranch. Chairman William B. Ruger, Jr. explained the Company's decision to sell the ranch that was acquired by the Company in 1986, "Over time it became evident that the Single-Six Ranch was an under-utilized asset, and current market conditions indicated that the timing was right for its disposition. The sale of the ranch better positions the Company to focus more closely on our core operations while providing working capital that we can invest in strategic growth opportunities in the future." Mr. Ruger, Jr. commented on the results of the firearms business, "After four consecutive quarters of general industry-wide firearms sales contraction, third quarter shipments stabilized, due in large part to several of our new firearm offerings. Shipments of the Ruger New Model Single-Six revolver in the popular .17 HMR caliber, the Ruger stainless steel New Bearcat, and the Ruger M77MKII bolt-action rifles chambered for the new .300 WSM caliber in both stainless and blued steel provided some resurgence to the Ruger firearms product line." In addition, shipments of the MK-4NRA, a very special and unique .22 caliber pistol commemorating William B. Ruger, which commenced in July, remained strong throughout the quarter and are expected to continue into 2004. For each such special pistol sold, the Company and Davidson's, one of the nation's largest firearms distributors, will collectively contribute $25 to the NRA Foundation's William B. Ruger Endowment to help fund firearms safety and education programs, wildlife habitat conservation studies, and other worthwhile programs to help secure the legacy of sport shooting traditions. (MORE) 5 Sturm, Ruger Earnings page 3 Mr. Ruger continued, "This quarter illustrates, once again, the importance of our ongoing firearms product innovation. We are committed to continue in the tradition that our Founder, William B. Ruger, engrained in the very fabric of our Company." Commenting on the castings segment, Mr. Ruger continued, "Although quarterly castings sales decreased by 21%, the investment castings segment's margins continue to outperform the prior year. While these results are indicative of our successful cost reduction efforts, we are aware that returning this segment to profitability is important to the long-term growth of the Company." The Company's success in the courtroom continues. On August 7, 2003, the Michigan Court of Appeals unanimously reversed the trial court's decision in cases brought by Detroit and Wayne County denying defendant's motion for summary disposition. This decision was based upon Michigan law which prohibits cities from bringing civil actions against manufacturers of firearms or ammunition unless the product is defective, or its sale breaches a warranty or contract with a city. President and General Counsel Stephen L. Sanetti expressed his satisfaction with the court's decision, "Once again, an appellate court has recognized that the wrong plaintiffs have improperly attempted to sue the wrong defendants under failed legal theories, based upon the actions of criminals over whom we have no control." The plaintiffs did not appeal this dismissal, which brings to eleven the number of municipal lawsuits which have been fully and finally dismissed. Mr. Sanetti spoke in support of federal legislation which would finally end such municipal litigation, pending in the United States Senate, "S.659 enjoys widespread support, is in accord with the (MORE) 6 Sturm, Ruger Earnings page 4 great number of court rulings on these cases, passed the House of Representatives by over a 2-to-1 margin, and is sponsored by a bipartisan majority of the Senate. It should be the law of the land." Mr. Sanetti also commented on the recently published 2003 edition of the National Safety Council's "Injury Facts" that showed, once again, the on-going decline of all firearms misuse. Since 1993, firearms homicides are down 41%, firearms suicides are down 12%, and fatal firearms accidents are down 49%, "This dramatic and beneficial national trend mirrors our own accident history, down from 69 pending product liability cases in 1979, to just 4 such cases pending today." Sturm, Ruger was founded in 1949. Since 1950 it has never failed to show an annual profit and has never required financing from outside sources. The Company's business segments are engaged in the manufacture of the world famous RUGER(R) brand of sporting and law enforcement firearms and titanium and steel investment castings for a wide variety of customers and end uses. Plants are located in Newport, New Hampshire and Prescott, Arizona. Corporate headquarters is located in Southport, Connecticut. 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 including lawsuits filed by mayors, attorneys general and other governmental entities and membership organizations, and the impact of future firearms control and (MORE) 7 Sturm, Ruger Earnings page 5 environmental legislation, 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. (MORE) 8 STURM, RUGER & COMPANY, INC. Condensed Consolidated Statements of Income (unaudited) (in thousands, except per share amounts)
Three Months Ended Nine Months Ended September 30, September 30, 2003 % 2002 % 2003 % 2002 % --------- -------- --------- ------- --------- -------- ----------- -------- Firearms sales $32,237 87.6 $32,210 84.7 $95,876 87.4 $108,366 85.8 Castings sales 4,583 12.4 5,830 15.3 13,877 12.6 17,898 14.2 --------- -------- --------- ------- --------- -------- ----------- -------- Net sales 36,820 100.0 38,040 100.0 109,753 100.0 126,264 100.0 Cost of products sold 31,102 84.5 31,115 81.8 85,091 77.5 97,114 76.9 --------- -------- --------- ------- --------- -------- ----------- -------- Gross profit 5,718 15.5 6,925 18.2 24,662 22.5 29,150 23.1 Expenses: Selling 3,987 10.8 3,696 9.7 11,197 10.2 11,111 8.8 General and administrative 1,465 3.9 1,504 4.0 4,532 4.1 4,720 3.7 --------- -------- --------- ------- --------- -------- ----------- -------- 5,452 14.7 5,200 13.7 15,729 14.3 15,831 12.5 --------- -------- --------- ------- --------- -------- ----------- -------- Operating income 266 0.8 1,725 4.5 8,933 8.2 13,319 10.6 Gain on sale of real estate 5,922 16.1 --- --- 5,922 5.4 --- --- Other income-net 243 0.6 545 1.5 861 0.7 1,367 1.1 --------- -------- --------- ------- --------- -------- ----------- -------- Total other income 6,165 16.7 545 1.5 6,783 6.1 1,367 1.1 --------- -------- --------- ------- --------- -------- ----------- -------- Income before income taxes 6,431 17.5 2,270 6.0 15,716 14.3 14,686 11.7 Income taxes 2,579 7.0 910 2.4 6,302 5.7 5,889 4.7 --------- -------- --------- ------- --------- -------- ----------- -------- Net Income $3,852 10.5 $1,360 3.6 $9,414 8.6 $8,797 7.0 ========= ======== ========= ======= ========= ======== =========== ======== Earnings per share Basic $0.14 $0.05 $0.35 $0.33 Diluted $0.14 $0.05 $0.35 $0.33 Cash dividends per share $0.20 $0.20 $0.60 $0.60 Average shares outstanding Basic 26,911 26,911 26,911 26,911 Diluted 26,928 27,093 26,914 27,062
9 STURM, RUGER & COMPANY, INC. Condensed Consolidated Balance Sheet (unaudited) (in thousands)
September 30 2003 ------------ Assets Cash and cash equivalents $2,550 Short-term investments 52,328 Trade receivables, net 14,387 Inventories 50,475 Deferred income taxes 6,683 Prepaid expenses and other assets 4,067 -------- Total current assets 130,490 Property, plant and equipment 156,654 Less depreciation (128,970) -------- 27,684 Deferred income taxes 8,675 Other assets 9,353 -------- Total $176,202 ======== Liabilities and Stockholders' Equity Trade accounts payable and accrued expenses $4,806 Product liability 4,000 Employee compensation 7,509 Workers' compensation 4,807 Income taxes 906 -------- Total current liabilities 22,028 Accrued pension liability 5,078 Deferred income taxes 7,857 Product liability accrual 4,606 Stockholders' equity 136,633 -------- Total $176,202 ========
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