{"id":3072,"date":"2012-08-03T01:27:00","date_gmt":"2012-08-03T01:27:00","guid":{"rendered":"https:\/\/onlygunsandmoney.com\/2012\/08\/03\/ruger-has-another-great-quarter\/"},"modified":"2019-08-16T18:19:14","modified_gmt":"2019-08-16T18:19:14","slug":"ruger-has-another-great-quarter","status":"publish","type":"post","link":"https:\/\/onlygunsandmoney.com\/?p=3072","title":{"rendered":"Ruger Has Another Great Quarter"},"content":{"rendered":"<div class='__iawmlf-post-loop-links' style='display:none;' data-iawmlf-post-links='[{&quot;id&quot;:15364,&quot;href&quot;:&quot;http:\\\/\\\/www.ruger.com\\\/corporate\\\/PDF\\\/ER-2012-08-01.pdf&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/ruger.com\\\/corporate\\\/PDF\\\/ER-2012-08-01.pdf&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:15365,&quot;href&quot;:&quot;http:\\\/\\\/www.media-server.com\\\/m\\\/p\\\/9z63b5td&quot;,&quot;archived_href&quot;:&quot;https:\\\/\\\/web-wp.archive.org\\\/web\\\/20190809190759\\\/http:\\\/\\\/www.media-server.com\\\/m\\\/p\\\/9z63b5td&quot;,&quot;redirect_href&quot;:&quot;&quot;,&quot;checks&quot;:[{&quot;date&quot;:&quot;2026-04-20 11:59:09&quot;,&quot;http_code&quot;:206}],&quot;broken&quot;:false,&quot;last_checked&quot;:{&quot;date&quot;:&quot;2026-04-20 11:59:09&quot;,&quot;http_code&quot;:206},&quot;process&quot;:&quot;done&quot;},{&quot;id&quot;:15366,&quot;href&quot;:&quot;http:\\\/\\\/seekingalpha.com\\\/article\\\/776251-sturm-ruger-co-management-discusses-q2-2012-results-earnings-call-transcript?page=3&amp;p=qanda&quot;,&quot;archived_href&quot;:&quot;&quot;,&quot;redirect_href&quot;:&quot;https:\\\/\\\/seekingalpha.com\\\/article\\\/776251-sturm-ruger-co-management-discusses-q2-2012-results-earnings-call-transcript?page=3&quot;,&quot;checks&quot;:[],&quot;broken&quot;:false,&quot;last_checked&quot;:null,&quot;process&quot;:&quot;done&quot;}]'><\/div>\n<p>Ruger released their <a href=\"http:\/\/www.ruger.com\/corporate\/PDF\/ER-2012-08-01.pdf\" target=\"_blank\" rel=\"noopener\">2nd quarter 2012 financial results yesterday<\/a> and held <a href=\"http:\/\/www.media-server.com\/m\/p\/9z63b5td\" target=\"_blank\" rel=\"noopener\">an earnings conference call<\/a> with investment analysts and those interested this morning. Suffice to say, Ruger had another great quarter.<\/p>\n<p>CEO Mike Fifer reported that Ruger&#8217;s earnings were up 63% for the quarter compared to the same quarter in 2011. Earnings growth was driven by a 50% growth in sales as well as some operational efficiencies. Breaking down sales, new products introduced in 2012 accounted for 38% of sales in the first half of 2012. Fifer attributed the following new products for driving this 38% increase:<\/p>\n<ul>\n<li>Ruger American rifle<\/li>\n<li>SR22 pistol<\/li>\n<li>10\/22 Take-down rifle<\/li>\n<li>22\/45 Lite pistol<\/li>\n<\/ul>\n<p>In terms of dollars figures, Ruger reported the following for the 2nd quarter of 2012:<\/p>\n<blockquote><p><i>The Company reported net sales of $119.6 million and fully diluted earnings of 91\u00a2 per share, compared with net sales of $79.6 million and fully diluted earnings of 56\u00a2 per share in the second quarter of 2011.<\/p>\n<p>For the six months ended June 30, 2012, net sales were $231.9 million and fully diluted earnings were $1.71 per share. For the corresponding period in 2011, net sales were $155.1 million and fully diluted earnings were 99\u00a2 per share.<\/i><\/p><\/blockquote>\n<p>Ruger&#8217;s unit sales or the number of firearms sold to distributors rose by&nbsp; 55% for the quarter. If one uses the NSSF adjusted NICS checks as a proxy for the industry as a whole, it only rose 18% during the quarter.<\/p>\n<p><a href=\"http:\/\/seekingalpha.com\/article\/776251-sturm-ruger-co-management-discusses-q2-2012-results-earnings-call-transcript?page=3&amp;p=qanda\" target=\"_blank\" rel=\"noopener\">During the conference call<\/a>, one analyst asked if the growth in sales for the LC9 were as a result of cannibalizing the sales of the LCP. Fifer replied, &#8220;Not in the slightest.&#8221;<\/p>\n<p>Fifer was asked about the $9 million in capital expenditures during the quarter. He replied:<\/p>\n<blockquote><p><i>Well, the important thing to know about the capital expenditures as I described is that we recognize them when they are placed in service. Which is &#8212; so it&#8217;s when I order it, not when I put a deposit on machinery, not when the machinery arrives, not even when I just get the tools up, <b>but when I actually start producing parts. So the fact that I recognize $9 million in the quarter, it means I had a lot of equipment start producing parts in the quarter.<\/b><\/i><\/p><\/blockquote>\n<p>Finally, there was a question about the backlog and whether the orders submitted were firm orders or not. Fifer replied that Ruger had a policy of only accepting firm non-cancelable orders. Part of the rationale behind the suspension of taking new orders this Spring was the company&#8217;s desire to maintain this policy. Prior to lifting this suspension, their sales staff worked with distributors reminding them to only order what they could actually sell to gun shops.<\/p>\n<p>Ruger had a great quarter and with all the talk of new gun control measure plus the elections I fully expect them to have a very good 3rd quarter.<\/p>\n<p>\n<b>Note:<\/b> In the interest of full disclosure, I am a shareholder in Sturm, Ruger and Company and have been for a number of years.<\/p>\n<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>","protected":false},"excerpt":{"rendered":"<p>Ruger released their 2nd quarter 2012 financial results yesterday and held an earnings conference call with investment analysts and&hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":2,"footnotes":""},"categories":[1],"tags":[3021,680],"class_list":["post-3072","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-financial-results","tag-ruger"],"_links":{"self":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/3072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3072"}],"version-history":[{"count":1,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/3072\/revisions"}],"predecessor-version":[{"id":8237,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=\/wp\/v2\/posts\/3072\/revisions\/8237"}],"wp:attachment":[{"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onlygunsandmoney.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}