PART I [Business Overview](index=4&type=section&id=Item%201.%20Business) Sturm, Ruger & Company, Inc. designs, manufactures, and sells firearms, accounting for 99% of 2022 revenue, through wholesale distributors, with a focus on innovation - Sturm, Ruger & Company, Inc. is primarily engaged in the design, manufacture, and sale of firearms to domestic customers, with firearms sales representing virtually all (**99%**) of total sales in 2022. Export sales accounted for approximately **6%** of firearms sales[13](index=13&type=chunk)[104](index=104&type=chunk) Product Category Net Sales | Product Category | 2022 Net Sales ($ millions) | 2021 Net Sales ($ millions) | 2020 Net Sales ($ millions) | | :--------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Rifles | 305.4 | 317.5 | 234.3 | | Pistols | 184.7 | 278.4 | 198.1 | | Revolvers | 70.0 | 84.4 | 79.1 | | Accessories | 33.2 | 47.8 | 54.1 | | Castings | 2.6 | 2.6 | 3.0 | - The Company acquired substantially all of the Marlin Firearms assets on November 23, 2020, for approximately **$28.3 million**, with shipments of Ruger-made Marlin lever-action rifles beginning in late Q4 2021[16](index=16&type=chunk)[172](index=172&type=chunk) - The Company's firearms are sold through independent wholesale distributors to the commercial sporting market, law enforcement, and governmental organizations. Top distributors in 2022 were Lipsey's (**23%**), Davidson's (**23%**), and Sports South (**21%**)[14](index=14&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) Research and Development Expenses | Metric | 2022 ($ millions) | 2021 ($ millions) | 2020 ($ millions) | | :----------------------------------- | :---------------- | :---------------- | :---------------- | | Research and Development Expenses | 9.6 | 11.7 | 8.0 | - As of February 1, 2023, the Company employed approximately **1,880** full-time employees, with about **28%** having at least ten years of service. The company focuses on competitive compensation, employee development through 'Ruger University,' and maintaining a safe workplace[45](index=45&type=chunk)[46](index=46&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The Company faces significant risks from government policies, firearms legislation, litigation, operational challenges, and supply chain disruptions - Changes in government policies and firearms legislation, including potential restrictions or bans on certain firearms, new technology requirements (e.g., microstamping, 'smart gun' technology), and diverse state/federal laws, could materially adversely affect the Company's financial results and operations[64](index=64&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) - The COVID-19 pandemic continues to pose significant uncertainty, potentially impacting operations, financial results, cash flow, and financial condition, despite the Company's proactive mitigation efforts in 2022[70](index=70&type=chunk)[106](index=106&type=chunk)[108](index=108&type=chunk) - The Company is exposed to various litigation matters, including product liability, municipal lawsuits (e.g., City of Gary, Estados Unidos Mexicanos, City of Buffalo, City of Rochester), and negligence claims (e.g., data breach related to ShopRuger.com). Adverse outcomes could materially affect financial results[72](index=72&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk)[318](index=318&type=chunk)[321](index=321&type=chunk)[336](index=336&type=chunk) - Operational risks include decreased demand for products, financial distress of independent distributors (who account for over **90%** of sales), reliance on third-party raw material suppliers and transportation, and potential business disruptions at manufacturing facilities[75](index=75&type=chunk)[76](index=76&type=chunk)[81](index=81&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) - The successful integration of Marlin branded firearms and the availability and retention of a skilled labor force, particularly senior management, are critical to the Company's success and present ongoing risks[86](index=86&type=chunk)[87](index=87&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The Company reported no unresolved staff comments from the SEC - There are no unresolved staff comments[88](index=88&type=chunk) [Properties](index=17&type=section&id=Item%202.%20Properties) The Company operates four manufacturing facilities for firearms and castings in Newport, Prescott, Mayodan, and Earth City, with executive offices in Southport, Connecticut Facility Locations | Facility Location | Approximate Usable Square Feet | Status | Segment | | :----------------------- | :----------------------------- | :----- | :--------------- | | Newport, New Hampshire | 350,000 | Owned | Firearms/Castings| | Prescott, Arizona | 230,000 | Leased | Firearms | | Mayodan, North Carolina | 220,000 | Owned | Firearms | | Earth City, Missouri | 35,000 | Leased | Castings | - The Company's principal executive offices are located in Southport, Connecticut[91](index=91&type=chunk) [Legal Proceedings](index=18&type=section&id=Item%203.%20Legal%20Proceedings) The Company was instituted in five new lawsuits during Q4 2022, including municipal litigation, a negligence claim, and two data breach class actions - Five lawsuits were formally instituted against the Company during the three months ending December 31, 2022[93](index=93&type=chunk) - The City of Buffalo v. Smith & Wesson Brands, Inc., et al. (filed in New York State Supreme Court, Erie County, on December 20, 2022)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - The City of Rochester v. Smith & Wesson Brands, Inc., et al. (filed in New York State Supreme Court, Monroe County, on December 21, 2022)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Rossiter v. Sturm, Ruger & Co., Inc., et al. (filed in Sullivan County Superior Court, New Hampshire, on December 13, 2022)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Jones v. Sturm, Ruger & Co. (filed in U.S. District Court, District of Connecticut, on October 4, 2022)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) - Copeland v. Sturm, Ruger & Company, et al. (filed in U.S. District Court, District of New Jersey, on October 27, 2022)[93](index=93&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Mine Safety Disclosures](index=18&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Mine Safety Disclosures are not applicable to Sturm, Ruger & Company, Inc[96](index=96&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=19&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The Company's common stock trades on the NYSE under 'RGR', with **1,826 stockholders** as of February 2023, repurchasing **$0.2 million** in shares in 2022, and **$86.5 million** authorized for future repurchases - The Company's common stock is traded on the New York Stock Exchange under the symbol 'RGR'. As of February 10, 2023, there were **1,826** stockholders of record[97](index=97&type=chunk) Issuer Purchases of Equity Securities | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Program | | :------------------------- | :------------------------------- | :------------------------------- | :------------------------------------------------------------------- | | August 28 to October 1, 2022 | 2,136 | 49.97 | 2,136 | | October 30 to November 26, 2022 | 2,304 | 49.77 | 2,304 | | **Total 2022** | **4,440** | **49.87** | **4,440** | - At December 31, 2022, approximately **$86.5 million** remained authorized for share repurchases. No shares were

Financial Data and Key Metrics Changes - For Q3 2022, net sales were $139.4 million, a decrease of 21% from $178.2 million in Q3 2021. Diluted earnings per share were $1.03, down from $1.98 in the same period last year [7][9] - For the first nine months of 2022, net sales totaled $446.6 million, compared to $562.7 million in the corresponding period of 2021, with diluted earnings per share decreasing from $6.64 to $3.90 [8][9] - Gross margin declined from 36% in Q3 2021 to 28% in Q3 2022, attributed to unfavorable fixed cost deleveraging and inflationary cost increases [9] Business Line Data and Key Metrics Changes - New product sales represented $54.9 million or 13% of firearm sales in the first nine months of 2022, with several new firearms launched in Q3 2022 [20] - The company continues to prioritize legacy products that remain in strong demand, including American centerfire rifles and the SR1911 family of pistols [22] Market Data and Key Metrics Changes - NICS background checks, adjusted by The National Shooting Sports Foundation, decreased by 14% for the first nine months of 2022, indicating a decline in consumer demand compared to 2021 [16] - The modern sporting rifle category and bulk of centerfire polymer-framed pistols have seen significant demand slow down compared to 2020 and 2021 [16][28] Company Strategy and Development Direction - The company is committed to pursuing manufacturing excellence and developing innovative new products while cultivating long-term shareholder value [23] - A new facility was purchased in Mayodan, North Carolina, to enhance manufacturing and warehousing operations, reflecting the company's growth strategy [14][23] Management's Comments on Operating Environment and Future Outlook - Management noted that inflationary pressures have constrained discretionary spending, impacting sales [9][16] - There are positive indicators in inventory management among distributors, suggesting a more stable market environment compared to previous cycles [38] Other Important Information - The effective income tax rate for Q3 2022 was unusually low at 12.3%, down from 26.7% in Q3 2021, due to research and development tax credits [10] - The company has a debt-free balance sheet with cash and short-term investments totaling $215 million as of October 1, 2022 [12] Q&A Session Summary Question: Impact of Marlin on numbers and new product launches for 2023 - Management indicated that Marlin is starting to contribute meaningfully, with new models in production and more expected in the first half of the coming year [25] Question: Retail demand and channel inventory - Demand for new products remains strong, but there is significant inventory at retail and distributor levels, leading to promotional efforts [28] Question: Average selling price changes - The average selling price of incoming orders increased to $421, largely due to new products, while units shipped had a lesser impact due to timing [29] Question: Competitive promotional activity in the firearm sector - Management noted some promotional activity among rifle manufacturers but less so in revolver categories [35] Question: Inflation impact and relief - The company is experiencing increased costs in materials and freight, with some stabilization observed but no significant relief yet [42][43] Question: Inventory management for Marlin - Marlin products are moving quickly from production to distributors, with minimal inventory held [44] Question: Headcount and hiring plans - The company maintains a stable workforce of 1800-1900 employees, with ongoing hiring efforts in specific facilities [47] Question: Pricing strategy for the remainder of the year - No price increases were implemented in Q3, but the company is evaluating pricing strategies for January [48][49]

Sturm, Ruger & Company, Inc. (NYSE:RGR) Q2 2022 Results Conference Call August 4, 2022 9:00 AM ET Company Participants Chris Killoy - President and CEO Kevin Reid - General Counsel Tom Dineen - CFO Conference Call Participants Mark Smith - Lake Street Rommel Dionisio - Aegis Capital Operator Good day, and thank you for standing by. Welcome to the Q2 2022 Sturm, Ruger Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the co ...

Sturm, Ruger & Company, Inc. (NYSE:RGR) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Christopher Killoy - President & Chief Executive Officer Kevin Reid - Senior Vice President & General Counsel Tom Dineen - Chief Financial Officer Conference Call Participants Ryan Meyers - Lake Street Capital Rommel Dionisio – Aegis Capital Ryan Hamilton - Morgan Dempsey Operator Good day, and thank you for standing by. Welcome to the First Quarter [Technical Difficulty] Sturm Ruger Earnings ...

Financial Data and Key Metrics Changes - For 2021, net sales increased to $730.7 million from $568.9 million in 2020, representing a 28% growth, while diluted earnings per share rose to $8.78 from $5.09 [4] - In Q4 2021, net sales were $168.0 million, slightly down from $169.3 million in Q4 2020, but diluted earnings per share increased to $2.14 from $1.78 due to a reduction in the effective tax rate [5] Business Line Data and Key Metrics Changes - New product sales in 2021 accounted for $155 million or 22% of firearm sales, up from $111 million in 2020, indicating strong performance from new offerings [12] - The company achieved a 30% increase in production with less than a 10% increase in manpower, leading to a 109% return on net operating assets for the year [9] Market Data and Key Metrics Changes - Despite a 12% reduction in National Instant Criminal Background Check System checks, the sell-through of products from distributors to retailers increased by 4% in 2021 [10] - Distributor inventories increased by 125,000 units in 2021 but remained below levels needed for rapid fulfillment of retailer demand [15] Company Strategy and Development Direction - The company plans to maintain a disciplined approach to manufacturing excellence and continue developing innovative products, with new launches expected under both Ruger and Marlin brands in 2022 [16] - The expansion of the Mayodan facility in North Carolina is aimed at increasing production capacity for Marlin products, with additional production lines planned [33] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in ammunition availability and a return to more normal inventory levels at retail, although some products remain in tight supply [18][19] - The company is monitoring inflation and has taken price increases to mitigate cost pressures, with no further increases anticipated in the near term [22][23] Other Important Information - The company generated $172 million in cash from operations in 2021 and returned $59 million to shareholders through dividends [7][8] - The current ratio was reported at 4.3:1, with no debt, providing a strong balance sheet for potential acquisitions [6] Q&A Session Summary Question: Comments on ammo availability - Management noted improved availability of core calibers like 9mm and 556, with ammunition companies ramping up production [18] Question: Impact of product availability on mix checks - Management indicated that earlier in 2021, product availability may have impacted numbers, but current retail inventory levels are improving [19] Question: Margin profile for Marlin rifles - Management expects the margin profile for Marlin rifles to be similar to other long-gun lines as production ramps up [20] Question: Update on gross margins - Management attributed solid gross margins to high volume covering fixed overhead, new product performance, and continuous improvement efforts [30][31] Question: Progress on North Carolina facility expansion - The Mayodan facility has expanded, allowing for increased production capacity and better management of finished goods [33] Question: Production adjustments in Q4 - COVID-19 impacted production, and adjustments were made to manage labor and avoid oversupply [39] Question: Demand outlook - Distributor sell-through remains solid, although not at the previous year's levels, with a focus on maintaining healthy inventory levels [41][42] Question: New product sales outlook - Management expects new products to contribute positively, with some legacy products rolling off the two-year sales metric [46]

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15(d) THE SECURITIES EXCHANGE ACT OF 1934 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ________ Commission File Number 0-4776 STURM, RUGER & COMPANY, I ...

Sturm Ruger & Company, Inc. (NYSE:RGR) Q3 2021 Earnings Conference Call November 4, 2021 9:00 AM ET Company Participants Christopher Killoy - President &CEO Kevin Reid - VP, General Counsel & Corporate Secretary Thomas Dineen - SVP, Treasurer & CFO Conference Call Participants Ryan Meyers - Lake Street Capital Markets Rommel Dionisio - Aegis Capital Ryan Hamilton - Morgan Dempsey Capital Management Operator Good morning and welcome to the Q3 2021 Sturm Ruger Earnings Call. At this time, all participants are ...

Sturm Ruger & Company, Inc. (NYSE:RGR) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Christopher Killoy - President, CEO & Director Kevin Reid - VP, General Counsel & Corporate Secretary Thomas Dineen - SVP, Treasurer & CFO Conference Call Participants Ryan Meyers - Lake Street Capital Markets Ryan Hamilton - Morgan Dempsey Capital Management Operator Ladies and gentlemen, thank you for standing by, and welcome to the Sturm, Ruger Second Quarter 2021 Earnings Conference Ca ...

Sturm, Ruger & Company, Inc. (NYSE:RGR) Q1 2021 Earnings Conference Call May 6, 2021 9:00 AM ET Company Participants Christopher Killoy - President and Chief Executive Officer Kevin Reid - Vice President of General Counsel and Corporate Secretary Thomas Dineen - Senior Vice President and Chief Financial Officer Conference Call Participants Ryan Meyers - Lake Street Capital Markets, LLC Rommel Dionisio - Aegis Capital Corporation Ryan Hamilton - Morgan Dempsey Capital Management, LLC Operator Good day, and t ...

Sturm, Ruger & Company, Inc. (NYSE:RGR) Q4 2020 Earnings Conference Call February 18, 2021 9:00 AM ET Company Representatives Chris Killoy - Chief Executive Officer Tom Dineen - Chief Financial Officer Kevin Reid - General Counsel Conference Call Participants Rommel Dionisio - Aegis Mark Smith - Lake Street Capital Ryan Hamilton - Morgan Dempsey Paul Saferstein - First New York Gavin Richey - Railroad Ranch Operator Ladies and gentlemen, thank you for standing by and welcome to the Sturm, Ruger, Fourth Quar ...