Sturm, Ruger & Company, Inc. Reports Second Quarter 2008 Results and Files Quarterly...

Sturm, Ruger & Company, Inc. Reports Second Quarter 2008 Results and Files Quarterly Report on Form 10-Q

SOUTHPORT, Conn.--(Business Wire)--
Sturm, Ruger & Company, Inc. (NYSE-RGR) today filed its Quarterly
Report on Form 10-Q for the second quarter of 2008, which has been
posted and is available on the SEC website at www.sec.gov and the
Ruger website at www.ruger.com/corporate/. The financial statements
included in this Quarterly Report on Form 10-Q are attached to this
press release. However, investors are urged to read the complete Form
10-Q to ensure that they have adequate information to make informed
investment judgments.

About Sturm, Ruger

Sturm, Ruger was founded in 1949 and is one of the nation's
leading manufacturers of high-quality firearms for the commercial
sporting market. Sturm, Ruger is headquartered in Southport, CT, with
manufacturing facilities located in Newport, NH and Prescott, AZ.

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, 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.

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STURM, RUGER & COMPANY, INC.

Condensed Balance Sheets (Unaudited)
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(Dollars in thousands, except share data)

June 28, December
2008 31, 2007
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Assets

Current Assets
Cash and cash equivalents $ 6,105 $ 5,106
Short-term investments 24,647 30,504
Trade receivables, net 13,611 15,636

Gross inventories 67,301 64,330
Less LIFO reserve (46,006) (46,890)
Less excess and obsolescence reserve (3,414) (4,143)
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Net inventories 17,881 13,297
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Deferred income taxes 5,867 5,878
Prepaid expenses and other current assets 4,013 3,091
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Total current assets 72,124 73,512

Property, plant and equipment 123,144 126,496
Less allowances for depreciation (99,610) (104,418)
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Net property, plant and equipment 23,534 22,078
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Deferred income taxes 3,589 3,626
Other assets 2,830 2,666
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Total Assets $102,077 $ 101,882
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STURM, RUGER & COMPANY, INC.

June 28, December
2008 31, 2007
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Liabilities and Stockholders' Equity

Current Liabilities
Trade accounts payable and accrued expenses $ 7,309 $ 8,102
Product liability 1,083 1,208
Employee compensation and benefits 4,439 4,860
Workers' compensation 5,267 5,667
Income taxes payable 1,613 411
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Total current liabilities 19,711 20,248

Accrued pension liability 2,730 4,840
Product liability accrual 627 725
Contingent liabilities - Note 8 -- --

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; 22,798,732 issued and
20,582,737 outstanding 22,799 22,788
Additional paid-in capital 2,231 1,836
Retained earnings 87,368 84,834
Less: Treasury stock - 2,215,995 shares, at cost (20,000) (20,000)
Accumulated other comprehensive loss (13,389) (13,389)
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Total Stockholders' Equity 79,009 76,069
----------------------------------------------------------------------
Total Liabilities and Stockholders' Equity $102,077 $101,882
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STURM, RUGER & COMPANY, INC.

Condensed Statements of Income (Unaudited)
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(Dollars in thousands, except per share data)

Second Quarter First Half
2008 2007 2008 2007
----------------- -----------------

Net firearms sales $36,839 $39,567 $76,869 $83,237
Net castings sales 1,825 2,540 4,301 7,327
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Total net sales 38,664 42,107 81,170 90,564

Cost of products sold 30,169 28,979 62,020 61,872
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Gross profit 8,495 13,128 19,150 28,692
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Expenses:
Selling 4,098 3,557 8,486 6,894
General and administrative 2,968 3,523 6,909 7,835
Other operating expenses
(income), net (54) (1,780) (54) (1,917)
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Total expenses 7,012 5,300 15,341 12,812
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Operating income 1,483 7,828 3,809 15,880
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Other income:
Gain on sale of real estate - - - 5,168
Interest income 118 746 280 1,194
Other income (expense), net 144 (8) (1) (219)
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Total other income, net 262 738 279 6,143
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Income before income taxes 1,745 8,566 4,088 22,023

Income taxes 663 3,435 1,554 8,831
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Net income $ 1,082 $ 5,131 $ 2,534 $13,192
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Earnings per share
Basic $ 0.05 $ 0.23 $ 0.12 $ 0.58
======== ======== ======== ========
Diluted $ 0.05 $ 0.22 $ 0.12 $ 0.57
======== ======== ======== ========

Average shares outstanding
Basic 20,576 22,658 20,576 22,649
======== ======== ======== ========
Diluted 20,609 23,068 20,626 22,951
======== ======== ======== ========
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STURM, RUGER & COMPANY, INC.

Condensed Statements of Cash Flows (Unaudited)
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(Dollars in thousands)
Six Months Ended
June 28, June 30,
2008 2007
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Operating Activities
Net income $ 2,534 $ 13,192
Adjustments to reconcile net income to cash (used
for) provided by operating activities:
Depreciation 2,390 2,108
Gain on sale of assets (54) (7,085)
Deferred income taxes 48 1,880
Changes in operating assets and liabilities:
Trade receivables 2,025 4,548
Inventories (4,584) 12,836
Trade accounts payable and accrued expenses (1,614) (1,899)
Product liability (223) 372
Prepaid expenses, other assets and other
liabilities (2,790) 879
Income taxes 1,202 3,216
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Cash (used for) provided by operating activities (1,066) 30,047
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Investing Activities
Property, plant and equipment additions (3,846) (1,304)
Proceeds from the sale of assets 54 12,485
Purchases of short-term investments (15,843) (44,096)
Proceeds from maturities of short-term
investments 21,700 2,000
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Cash provided by (used for) investing activities 2,065 (30,915)
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Increase (Decrease) in cash and cash equivalents 999 (868)

Cash and cash equivalents at beginning of period 5,106 7,316

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Cash and cash equivalents at end of period $ 6,105 $ 6,448
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Sturm, Ruger & Company, Inc.
One Lacey Place
Southport, CT 06890
www.ruger.com
203-259-7843

Copyright Business Wire 2008