Financial Data and Key Metrics Changes - In 2024, net sales were $536 million, a decrease from $544 million in 2023, while diluted earnings per share fell from $2.71 to $1.77 [9][10] - Gross margin declined from 25% in 2023 to 21% in 2024 due to unfavorable fixed cost deleveraging, inflationary pressures, and a shift in product mix [10] - In Q4 2024, net sales increased to $146 million from $131 million in Q4 2023, with diluted earnings per share rising from $0.58 to $0.62 [10] Business Line Data and Key Metrics Changes - New product sales accounted for $159 million, representing 32% of total firearm sales in 2024 [20] - The estimated sell-through of products from distributors to retailers increased for both Q4 and the full year, despite a decrease in adjusted NICS background checks [21] Market Data and Key Metrics Changes - Data suggests that used gun sales represented a larger percentage of overall retail firearm sales in 2024 compared to 2023, indicating potential market share gains for the company [22] Company Strategy and Development Direction - The company remains focused on long-term shareholder value creation, with a disciplined pricing strategy to promote consistency throughout the distribution channel [23] - The company plans to continue collaborating with Magpul on new product developments, including various frame sizes and grip colors for the RXM [34] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the banking situation in the U.S. and emphasized a conservative approach to cash management [37] - The company entered 2025 with a strong debt-free balance sheet and reduced inventories, along with a full pipeline of new products [22] Other Important Information - The board declared a quarterly dividend of $0.24 per share, which is approximately 40% of net income [14] - The company celebrated its 75th anniversary in 2024 with various events and new product launches [16][18] Q&A Session Summary Question: Inquiry about the impact of new products, specifically the RXM - Management noted that the RXM had a significant impact in December, with preplanned retailer summits leading to a smooth launch and strong sales [28][31] Question: Discussion on the potential for new product variations and collaboration with Magpul - Management confirmed plans for continued collaboration with Magpul, including new frame sizes and grip options for the RXM [34] Question: Inquiry about future cash uses and share repurchase appetite - Management indicated that both share repurchases and special dividends remain options, alongside potential strategic acquisitions [36][39] Question: Inquiry about gross margins and product mix - Management explained that the successful launch of 75th anniversary models, priced competitively, contributed to decreased gross margins due to product mix [45]

Financial Performance - In 2024, Sturm, Ruger reported net sales of $535.6 million, a decrease of 1.9% from $543.8 million in 2023, with diluted earnings per share of $1.77 compared to $2.71 in 2023[4] - For Q4 2024, net sales were $145.8 million, up 11.5% from $130.6 million in Q4 2023, with diluted earnings of 62¢ per share, an increase from 58¢ per share in the same period last year[4] - Total net sales for 2024 were $535,643, a decrease of 1.9% from $543,767 in 2023[18] - Gross profit for 2024 was $114,415, down 14.3% from $133,619 in 2023[18] - Operating income decreased to $31,654 in 2024, a decline of 39.2% compared to $52,084 in 2023[18] - Net income for 2024 was $30,563, representing a 36.7% decrease from $48,215 in 2023[18] - Basic Earnings Per Share (EPS) for 2024 was $1.79, down 34.5% from $2.73 in 2023[18] - EBITDA for 2024 was $55,055, a decrease of 27.5% from $75,947 in 2023, with an EBITDA margin of 10.3%[21] Sales and Product Performance - New products accounted for $159.3 million, or 32% of firearms sales in 2024, up from $119.0 million, or 23% in 2023[9] - The estimated unit sell-through of products increased by 5% in 2024, despite a 4% decrease in adjusted NICS background checks[9] Cash Flow and Shareholder Returns - Cash provided by operations in 2024 was $55.5 million, with cash and short-term investments totaling $105.5 million at year-end[9] - The company returned $46.2 million to shareholders in 2024, including $11.8 million in dividends and $34.4 million in stock repurchases[9] - Dividends paid in 2024 were $11,829, a significant decrease from $110,789 in 2023[19] - The company declared a dividend of 24¢ per share for Q4 2024, representing approximately 40% of net income[5] Balance Sheet and Liabilities - At December 31, 2024, stockholders' equity was $319.6 million, equating to a book value of $19.03 per share[10] - Total current liabilities increased to $60,809,963 from $31,708,000[17] - Trade accounts payable and accrued expenses amounted to $35,750,000, up from $31,708,000[17] - Total stockholders' equity reached $31,958,233, compared to $31,721,000 in the previous year[17] - Total liabilities and stockholders' equity decreased to $384,034 from $398,817[17] - Employee compensation and benefits liabilities were reported at $18,824,242[17] - Product liability accrued was $6,146,000[17] - Common stock outstanding decreased from 17,458,620 to 16,790,824 shares[17] - Retained earnings increased to $436,609,418 from $415,058,000[17] - Total liabilities amounted to $352,076,000, a decrease from the previous year's $367,000,000[17] Capital Expenditures - Capital expenditures for 2024 were $20.8 million, with expectations of approximately $20 million in 2025[9]

Sales Performance - Estimated sell-through of the Company's products from independent distributors to retailers increased by 5% in 2024, with 1,471,300 units sold compared to 1,406,600 units in 2023[113][114]. - Net firearms sales decreased by $8.1 million or 1.5% in 2024, totaling $532.6 million, while total net sales also decreased by $8.1 million or 1.5% to $535.6 million[125]. - In Q4 2024, the company reported net firearms sales of $145.3 million, a 12.1% increase from $129.6 million in Q4 2023[139]. - Total net sales for Q4 2024 reached $145.8 million, up 11.6% from $130.6 million in Q4 2023[139]. - Net firearms sales decreased by $52.6 million or 8.9% to $540.7 million in 2023, while total net sales fell by $52.1 million or 8.7% to $543.7 million[155]. Profitability - Gross profit for 2024 was $114.4 million, a decrease of $19.2 million or 14.4% from 2023, with a gross margin of 21.4% compared to 24.6% in 2023[125][126]. - Operating income fell to $31.6 million, representing 5.9% of sales, down from $52.1 million or 9.6% of sales in 2023[130]. - Consolidated net income for 2024 was $30.6 million, a decrease of $17.6 million from $48.2 million in 2023[133]. - Gross profit declined by $46.5 million or 25.8% to $133.6 million, resulting in a gross margin of 24.6%, down from 30.2% in 2022[155][157]. - Operating income was $52.1 million, representing 9.6% of sales, a decrease of $51.4 million from 2022[160]. - Consolidated net income fell by $40.1 million to $48.2 million in 2023, compared to $88.3 million in 2022[164]. Inventory and Backlog - The ending backlog increased to $252.9 million in 2024 from $229.0 million in 2023[118]. - Total inventory decreased to 311,000 units in 2024 from 402,800 units in 2023, with finished goods inventory down by 28,300 units[122]. - The ending backlog for orders in Q4 2023 was $229.0 million, down from $314.4 million in Q4 2022[141]. - The company's finished goods inventory increased by 30,700 units during 2023, while distributor inventories decreased by 39,100 units[149]. New Products - New products accounted for $159.3 million or 32% of firearms sales in 2024, up from $119.0 million or 23% in 2023[125]. - New products accounted for $119.0 million or 23% of firearms sales in 2023, up from $78.4 million or 14% in 2022[156]. Expenses and Tax - Selling, general, and administrative expenses increased by $4.9 million or 6.4% to $81.5 million, driven by higher trade show costs and professional service expenses[158][159]. - The effective income tax rate was 18.0% in 2023, slightly lower than 18.4% in 2022, influenced by research and development tax credits[163]. EBITDA - EBITDA for 2024 was $55.1 million, with an EBITDA margin of 10.3%, down from $75.9 million and 14.0% in 2023[136]. - EBITDA decreased to $75.9 million with an EBITDA margin of 14.0%, down from 22.1% in 2022[167]. Market Conditions and Risks - The Company believes that the valuation of its inventory and the related excess and obsolescence reserve is critical, with inventories carried at the lower of cost or market, determined by the LIFO method[197]. - The Company projects future inventory usage based on market conditions and customer preferences, indicating that it does not carry inventory at full cost beyond what is projected to be needed in the next 36 months[198]. - A hypothetical 100 basis point change in market interest rates would not materially impact the Company's earnings or cash flows, nor would it affect the fair value of the Company's investments[205]. - The Company has not undertaken any actions to cover interest rate market risk and does not engage in interest rate market risk management activities[205]. - Management believes there is a remote likelihood that litigation will have a material adverse effect on the Company's financial position, but it may impact financial results and cash flows for specific periods[196]. - The Company has not provided specific numerical guidance for future expectations, citing various risks and uncertainties that could cause actual results to differ materially from projections[202]. Share Repurchase and Capital Expenditures - The company repurchased 264,062 shares for $11.8 million in 2023, with an average price of $44.71 per share[178]. - Capital expenditures were $15.8 million in 2023, with expectations to approximate $20 million in 2025 for new product tooling and equipment upgrades[174]. Accounting Standards - The Company adopted ASU 2023-07, which requires enhanced reportable segment disclosures, effective for fiscal years beginning after December 15, 2023, but did not have a material impact on the Company[200]. - The Company is currently evaluating the effect of ASU 2023-09 on its financial statement disclosures, which requires expanded income tax disclosures effective for fiscal years beginning after December 15, 2024[200].

Financial Data and Key Metrics Changes - For Q3 2024, net sales were $122.3 million, a slight increase from $120.9 million in Q3 2023, while diluted earnings per share decreased to $0.28 from $0.42 in the same period [8] - For the nine months ended September 28, 2024, net sales totaled $389.9 million, down from $413.2 million in the corresponding period of 2023, with diluted earnings per share decreasing to $1.15 from $2.13 [9] - Cash and short-term investments amounted to $96 million, with a current ratio of 4.5:1 and no debt reported [10] Business Line Data and Key Metrics Changes - New product sales accounted for $113 million or 31% of firearm sales in the first nine months of 2024, indicating a strong performance from recently introduced products [18] - The company reported a decrease in finished goods inventory and distributor inventories by 125,000 units over the past year, suggesting improved inventory management [16] Market Data and Key Metrics Changes - Overall market demand showed signs of recovery in Q3 2024, with adjusted background checks increasing by 4.5% year-over-year, while the estimated unit sell-through of products from independent distributors to retailers rose by 9% [13] - Despite a 3% decrease in adjusted NICS for the first nine months of 2024, the company's estimated distributor sell-through increased by 4%, indicating market share gains [13] Company Strategy and Development Direction - The company aims to maintain a disciplined pricing strategy and focus on innovation to drive growth, rather than engaging in aggressive discounting [28] - The introduction of new products is a key strategy for gaining market share, with several new offerings launched during the company's 75th anniversary [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the current economic environment, characterized by high interest rates and rising consumer debt, has led to an increase in used gun sales, which may indicate a shift in consumer behavior [15] - The company anticipates that the backlog of orders, particularly for Marlin rifles, will extend into 2025, reflecting strong demand [22] Other Important Information - The company returned $39.3 million to shareholders through dividends and share repurchases in the first nine months of 2024, with a quarterly dividend of $0.11 per share declared for November [11] - The company received multiple industry awards, including Firearm Manufacturer of the Year, highlighting its strong reputation in the market [19] Q&A Session Summary Question: Discussion on the difference between ASP of orders and backlog - Management indicated that the higher average selling price (ASP) in the backlog is primarily due to the inclusion of Marlin rifles, which have a higher selling price [21] Question: Timing of rifle deliveries for key hunting seasons - Management expects many rifles to be delivered in 2025, although production is being maximized in Q4 [22] Question: Factors affecting gross profit margin - Management attributed the decline in gross profit margin to product mix and strategic pricing decisions made during the anniversary promotions [23] Question: Insights on consumer demand and promotional environment - Management acknowledged pressure in the market but stated that they plan to avoid aggressive promotions in Q4, focusing instead on product innovation [26][28] Question: Competitive promotional environment and industry stability - Management noted that oversupply and over-inventoried wholesalers are contributing to ongoing promotions, but they believe the market will stabilize in 2025 [34] Question: Changes in customer demographics and participation - Management highlighted efforts to convert first-time buyers into long-term customers, particularly targeting niche markets such as female customers [39]

Core Viewpoint - Sturm, Ruger & Company, Inc. held its Q3 2024 earnings conference call, where key executives discussed financial results and operational insights. Group 1: Company Overview - Christopher Killoy, President and CEO, introduced the conference call and outlined the agenda, which included financial results and market operations [3]. - Kevin Reid, General Counsel, provided a caution regarding forward-looking statements, emphasizing that actual results may differ from projections [4]. Group 2: Financial Results - Tom Dineen, Chief Financial Officer, was set to present an overview of the third quarter 2024 financial results, indicating a structured approach to financial reporting [3].

Financial Performance - For Q3 2024, net sales were $122.3 million, a slight increase from $120.9 million in Q3 2023, while diluted earnings decreased to 28¢ per share from 42¢ per share[1][2] - For the first nine months of 2024, net sales totaled $389.9 million, down from $413.2 million in the same period of 2023, with diluted earnings decreasing to $1.15 per share from $2.13 per share[2] - Net firearms sales for the three months ended September 30, 2024, were $121,512 thousand, a slight increase of 0.95% compared to $120,368 thousand for the same period in 2023[17] - Total net sales for the nine months ended September 28, 2024, were $389,868 thousand, down 5.6% from $413,150 thousand for the same period in 2023[17] - Gross profit for the three months ended September 30, 2024, was $22,672 thousand, a decrease of 8.4% from $24,728 thousand in the same period last year[17] - Operating income for the nine months ended September 28, 2024, was $20,245 thousand, down 51.5% from $41,762 thousand for the same period in 2023[17] - EBITDA for the three months ended September 28, 2024, was $9,938 thousand, representing an EBITDA margin of 8.1%, compared to 11.0% in the same period last year[22] - Net income for the nine months ended September 28, 2024, was $20,086 thousand, a decrease of 47.2% from $37,966 thousand for the same period in 2023[18] Cash Flow and Investments - Cash provided by operations during the first nine months of 2024 was $35.5 million, with cash and short-term investments totaling $96.0 million as of September 28, 2024[7] - Cash provided by operating activities for the nine months ended September 28, 2024, was $35,483 thousand, significantly up from $17,298 thousand in the same period last year[18] - Cash and cash equivalents at the end of the period were $7,522 thousand, down from $13,559 thousand at the end of the same period last year[18] - Capital expenditures for the first nine months of 2024 were $17.2 million, with expectations to reach approximately $20 million for the full year[8] Shareholder Returns - The company declared a quarterly dividend of 11¢ per share, which is approximately 40% of net income, payable on November 27, 2024[3] - The company returned $39.3 million to shareholders in the first nine months of 2024 through dividends and share repurchases[8] - The company repurchased common stock amounting to $29,355 thousand during the financing activities[18] Inventory and Sales Trends - Estimated unit sell-through from independent distributors to retailers increased by 4% in the first nine months of 2024 compared to the prior year[5] - Sales of new products accounted for $113.3 million, representing 31.2% of firearm sales in the first nine months of 2024[6] - Finished goods inventories decreased by 26,500 units, while distributors' inventories decreased by 98,600 units compared to Q3 2023[7] Stockholders' Equity - Stockholders' equity as of September 28, 2024, was $314.9 million, equating to a book value of $18.76 per share[9] Earnings Per Share - Basic earnings per share for the three months ended September 30, 2024, were $0.28, down from $0.42 in the same period last year[17]

With markets near record highs, it gets more difficult to find reasonably priced shares that may provide satisfying long-term value. My quest for hunting for bargains has led me to what others refer to as sin stocks like Philipp is a seasoned value investor with nearly 20 years of experience in the field. He takes a global approach to investment opportunities, seeking out undervalued companies that offer a significant margin of safety, leading to attractive dividend yields and returns. While he does not lim ...

Financial Data and Key Metrics - Net sales for Q2 2024 were $130.8 million, down from $142.8 million in Q2 2023 [5] - Diluted earnings per share for Q2 2024 were $0.47, compared to $0.91 in Q2 2023 [5] - For the first half of 2024, net sales were $267.6 million, down from $292.3 million in the same period in 2023 [5] - Diluted earnings per share for the first half of 2024 were $0.87, compared to $1.72 in the first half of 2023 [5] - Cash and short-term investments totaled $106 million as of June 29, 2024 [6] - The company generated $26.1 million in cash from operations in the first half of 2024 and reinvested $10.4 million in capital expenditures [6] Business Line Performance - New product sales accounted for $80 million or 31% of firearm sales in the first half of 2024 [10] - Recently introduced products such as the American Rifle Generation II, Marlin 1895 Dark Series, and LC Carbine Chambered in 45 auto drove distributor sell-through [9] - The company plans to increase production in the second half of 2024 to replenish inventories, especially for new products [10] Market Performance - Estimated unit sell-through of products from independent distributors to retailers increased by 1% in both Q2 and the first half of 2024 compared to the prior year [8] - NICS background checks, adjusted by the National Shooting Sports Foundation, decreased by 8% in Q2 and 6% in the first half of 2024 [8] Company Strategy and Industry Competition - The company is focused on designing, engineering, and manufacturing innovative new products, with new product sales contributing significantly to overall sales [10] - The company has implemented cost reduction initiatives and increased production by 18% in Q2 2024, with further improvements expected in the second half of the year [11] - The company's disciplined pricing and promotion strategy aims to enhance long-term performance and promote consistency in the distribution channel [11] Management Commentary on Operating Environment and Future Outlook - Management noted that consumer demand in the firearms market has declined compared to last year, but demand for certain products remains consistent [8] - The company expects to leverage fixed costs and improve margins through increased production in the second half of 2024 [10] - Management is not banking on a significant demand spike related to the upcoming presidential election but is prepared to meet any unexpected increase in demand [19] Other Important Information - The company returned $27.1 million to shareholders in the first half of 2024 through dividends and share repurchases [7] - The Board of Directors declared a $0.19 per share quarterly dividend, payable on August 30, 2024 [7] - The company's current cash balance remains above $100 million, and it has no debt [6][7] Q&A Session Summary Question: ASPs and Backlog - The backlog is primarily driven by Marlin lever action rifles and Ruger American Generation II rifles, which are at a higher price point compared to incoming orders that include 75th-anniversary models [13] Question: Demand for Lower-Priced Items - The mix of products shipped in Q2 2024 was strong but biased towards lower-priced items, particularly 75th-anniversary models, which were priced sharply to ensure velocity in the market [14][15] Question: Margin Outlook - Margin improvements are expected to be driven by cost reduction initiatives and increased production, which will help leverage fixed costs [16] Question: July Demand - July demand remained slow, with lower-priced items and hard-to-get items driving sales, reflecting the cyclical and seasonal nature of the firearms industry [17][18] Question: New Product Launches - The company plans to continue launching new products in the second half of 2024 and does not intend to slow down product introductions despite the challenging industry environment [20][21][22] Question: Election Impact on Demand - The company is not expecting a significant demand spike related to the upcoming presidential election but is prepared to meet any unexpected increase in demand [19]

Thank you for standing by, and welcome to Sturm, Ruger's First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-andanswer session. [Operator Instructions]. In the first quarter of 2024, we implemented a reduction in force that impacted about 80 of our employees and resulted in a severance expense of $1.5 million. This charge reduced earnings per share by $0.07. Chris will provide further commentary on th ...

EXHIBIT 99.1 FOR IMMEDIATE RELEASE STURM, RUGER & COMPANY, INC. REPORTS FIRST QUARTER DILUTED EARNINGS OF 40¢ PER SHARE AND DECLARES QUARTERLY DIVIDEND OF 16¢ PER SHARE SOUTHPORT, CONNECTICUT, May 7, 2024--Sturm, Ruger & Company, Inc. (NYSE-RGR) announced today that for the first quarter of 2024, net sales were $136.8 million and diluted earnings were 40¢ per share. For the corresponding period in 2023, net sales were $149.5 million and diluted earnings were 81¢ per share. The Company also announced today t ...