STURM RUGER & CO INC
For the period ended Mar 29, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed Apr 30, 2025
RGR$49.93+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-10-30.
0001174947-24-001190
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-04-30.
0001174947-25-000659
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 76 previous paragraphs and 64 current paragraphs.
41 unchanged; 21 reworded; 2 added; 10 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
The increased gross profit for the three months ended March 29, 2025 is attributable to favorable leveraging of fixed costs resulting from increased production, despite the $0.8 million of deferred revenue related to sales promotions.
Current report
EBITDA was $14.3 million for the three months ended March 29, 2025, an increase of 5.6% from $13.5 million in the comparable prior year period.
Removed paragraphs (10)
Previous report
The decreased gross profit for the three months ended September 28, 2024 is attributable to unfavorable deleveraging of fixed costs resulting from decreased production and a product mix shift toward products with relatively lower margins that remain in relatively stronger demand.
Previous report
The decreased gross profit for the nine months ended September 28, 2024 is attributable to unfavorable deleveraging of fixed costs resulting from decreased production, a product mix shift toward products with relatively lower margins that remain in relatively stronger demand, and the decrease in sales.
Previous report
The decrease in gross margin for the nine months ended September 28, 2024 is attributable to the aforementioned factors, partially offset by increased pricing.
Previous report
The increase in selling expenses for the nine months ended September 28, 2024 was attributable increased spending on advertising, partially offset by modest reductions in several selling and marketing initiatives.
Previous report
The increase in general and administrative expenses for the nine months ended September 28, 2024 was primarily attributable to accrued severances of $1.5 million taken in the first quarter of 2024 related to a reduction in force involving approximately 80 employees, partially offset by decreased incentive compensation expenses. The aforementioned accrued severances are expected to be settled in cash and consist of one-time termination charges arising from severance obligations and other customary employee benefit payments in connection with a reduction in force.
Previous report
The reduction in force is expected to result in approximately $9 million of annualized cash savings. This action is part of the Company’s initiatives to reallocate its resources and cost structure into prioritized areas that will drive long-term growth and improve margins.
Previous report
The decrease in other income for the nine months ended September 28, 2024 was the result of decreases in interest income and miscellaneous income.
Previous report
Consolidated net income was $20.1 million for the nine months ended September 28, 2024, a decrease of 47.1% from $38.0 million in the comparable prior year period.
Previous report
EBITDA was $9.9 million for the three months ended September 28, 2024, a decrease of 25.2% from $13.3 million in the comparable prior year period.
Previous report
For the nine months ended September 28, 2024 EBITDA was $37.9 million, a decrease of 39.2% from $62.4 million in the comparable prior year period.
Reworded paragraphs (21)
Previous wording
Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales accounted for approximately 5% and 7% of total sales for the nine month periods ended September 28, 2024 and September 30, 2023, respectively. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market.
Current wording
Sturm, Ruger & Company, Inc. (the “Company”) is principally engaged in the design, manufacture, and sale of firearms to domestic customers. Approximately 99% of sales are from firearms. Export sales accounted for approximately 5% of total sales for each of the three month periods ended March 29, 2025 and March 30, 2024. The Company’s design and manufacturing operations are located in the United States and almost all product content is domestic. The Company’s firearms are sold through a select number of independent wholesale distributors, principally to the commercial sporting market.
Previous wording
The estimated unit sell-through of the Company’s products from the independent distributors to retailers increased 4% in the first nine months of 2024 compared to the prior year period. For the same period, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation (“NSSF”)) decreased 3%. Estimated sell-through from the independent distributors to retailers and total adjusted NICS background checks for the trailing seven quarters follow:
Current wording
The estimated unit sell-through of the Company’s products from the independent distributors to retailers decreased 8% in the first quarter of 2025 compared to the prior year period. For the same period, National Instant Criminal Background Check System (“NICS”) background checks (as adjusted by the National Shooting Sports Foundation (“NSSF”)) decreased 4%. Estimated sell-through from the independent distributors to retailers and total adjusted NICS background checks for the trailing five quarters follow:
Previous wording
The units ordered, value of orders received, average sales price of units ordered, and ending backlog for the trailing seven quarters are as follows (dollars in millions, except average sales price):
Current wording
The units ordered, value of orders received, average sales price of units ordered, and ending backlog for the trailing five quarters are as follows (dollars in millions, except average sales price):
Previous wording
The Company reviews the estimated sell-through from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company to plan production levels. The Company’s overall production in the third quarter of 2024 decreased 11% from the second quarter of 2024*.*
Current wording
The Company reviews the estimated sell-through from the independent distributors to retailers, as well as inventory levels at the independent distributors and at the Company to plan production levels. The Company’s overall production in the first quarter of 2025 increased 2% from the fourth quarter of 2024*.*
Previous wording
Firearms unit data for the trailing seven quarters are as follows (dollar amounts shown are net of Federal Excise Tax of 10% for handguns and 11% for long guns):
Current wording
Firearms unit data for the trailing five quarters are as follows (dollar amounts shown are net of Federal Excise Tax of 10% for handguns and 11% for long guns):
Previous wording
During the third quarter of 2024, the Company’s finished goods inventory increased by 2,900 units and distributor inventories of the Company’s products decreased by 8,900 units.
Current wording
During the first quarter of 2025, the Company’s finished goods inventory increased by 15,300 units and distributor inventories of the Company’s products decreased by 7,900 units.
Previous wording
Inventory unit data for the trailing seven quarters follows:
Current wording
Inventory unit data for the trailing five quarters follows:
Previous wording
The increase in total consolidated net sales and net firearms sales for the three months ended September 28, 2024 is attributable to strong demand for certain of the Commpany’s firearms. Sales of new products, including the Security-380 pistol, Super Wrangler revolver, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II represented $35.5 million or 31.0% of firearm sales in the three months ended September 28, 2024. New product sales include only major new products that were introduced in the past two years.
Current wording
Total consolidated net sales and net firearms sales decreased slightly for the three months ended March 29, 2025. Sales of new products, including the RXM pistol, Super Wrangler revolver, Marlin lever-action rifles, and American Centerfire Rifle Generation II represented $40.7 million or 31.6% of firearm sales in the three months ended March 29, 2025. New product sales include only major new products that were introduced in the past two years.
Previous wording
The decrease in gross margin for the three months ended September 28, 2024 is attributable to the aforementioned factors, partially offset by increased pricing.
Current wording
The increase in gross margin for the three months ended March 29, 2025 is attributable to the aforementioned factors.
Previous wording
The increase in selling expenses for the three months ended September 28, 2024 was attributable to increased spending on advertising, partially offset by modest reductions in several selling and marketing initiatives.
Current wording
The decrease in selling expenses for the three months ended March 29, 2025 was attributable to decreased spending on industry shows, personnel costs, and shipping expenses, partially offset by increases in travel costs and several promotional and marketing initiatives.
Previous wording
The increase in general and administrative expenses for the three months ended September 28, 2024 was primarily attributable to increased professional service costs.
Current wording
The slight decrease in general and administrative expenses for the three months ended March 29, 2025 was primarily attributable to the initial expense of the prior year’s reduction in force, partially offset by increased professional service costs.
Previous wording
The Company's 2024 and 2023 effective tax rates differ from the statutory federal tax rate due principally to research and development tax credits, state income taxes and the nondeductibility of certain executive compensation. The Company’s effective income tax rate was 10.0% and 18.9% for the three and nine months ended September 28, 2024, respectively. The Company’s effective income tax rate was 8.1% and 18.9% for the three and nine months ended September 30, 2023, respectively.
Current wording
The Company's 2025 and 2024 effective tax rates differ from the statutory federal tax rate due principally to research and development tax credits, state income taxes and the nondeductibility of certain executive compensation. The Company’s effective income tax rate was 20.3% and 21.7% for the three months ended March 29, 2025 and March 30, 2024, respectively
Previous wording
As a result of the foregoing factors, consolidated net income was $4.7 million for the three months ended September 28, 2024, a decrease of 36.2% from $7.4 million in the comparable prior year period.
Current wording
As a result of the foregoing factors, consolidated net income was $7.8 million for the three months ended March 29, 2025, an increase of 9.7% from $7.1 million in the comparable prior year period.
Previous wording
At the end of the third quarter of 2024, the Company’s cash and short-term investments totaled $96.0 million. Pre-LIFO working capital of $260.4 million, less the LIFO reserve of $68.3 million, resulted in working capital of $192.1 million and a current ratio of 4.5 to 1.
Current wording
At the end of the first quarter of 2025, the Company’s cash and short-term investments totaled $108.3 million. Pre-LIFO working capital of $266.1 million, less the LIFO reserve of $67.5 million, resulted in working capital of $198.6 million and a current ratio of 4.6 to 1.
Previous wording
Cash provided by operating activities was $35.5 million for the nine months ended September 28, 2024, compared to $1.3 million for the comparable prior year period. The increase in cash provided in the nine months ended September 28, 2024 is primarily attributable to decreases in inventory and prepaid expenses and other assets in the nine months ended September 28, 2024, partially offset by the decrease in net income in the nine months ended September 28, 2024.
Current wording
Cash provided by operating activities was $11.1 million for the three months ended March 29, 2025, compared to $7.3 million for the comparable prior year period. The increase in cash provided in the three months ended March 29, 2025 is primarily attributable to the increase in net income and the lesser increase in deferred income taxes and lower net payouts of accrued employee compensation and benefits in the three months ended March 29, 2025, partially offset by the lesser reductions in inventory and prepaid expenses and other current assets in the three months ended March 29, 2025.
Previous wording
Capital expenditures for the nine months ended September 28, 2024 totaled $17.2 million, an increase from $11.6 million in the comparable prior year period. In 2024, the Company expects capital expenditures related to new product introductions and upgrades to our manufacturing equipment and facilities to total approximately $20 million. Actual capital expenditures could vary significantly from the projected amount due to the timing of capital projects. The Company finances, and intends to continue to finance, all of these activities with funds provided by operations and current cash and cash equivalents.
Current wording
Capital expenditures for the three months ended March 29, 2025 totaled $1.1 million, a decrease from $1.8 million in the comparable prior year period. In 2025, the Company expects capital expenditures related to new product introductions and upgrades to our manufacturing equipment and facilities could range from $20 million to $30 million. Actual capital expenditures could vary significantly from the projected amounts due to the timing of capital projects. The Company finances, and intends to continue to finance, all of these activities with funds provided by operations and current cash and cash equivalents.
Previous wording
Dividends of $10.0 million were paid during the nine months ended September 28, 2024. The Company has financed its dividends with cash provided by operations and current cash. The quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. The Company’s practice is to pay a dividend of approximately 40% of net income.
Current wording
Dividends of $4.0 million were paid during the three months ended March 29, 2025. The Company has financed its dividends with cash provided by operations and current cash. The quarterly dividend varies every quarter because the Company pays a percentage of earnings rather than a fixed amount per share. The Company’s practice is to pay a dividend of approximately 40% of net income.
Previous wording
On October 25, 2024, the Company’s Board of Directors authorized a dividend of 11¢ per share to shareholders of record on November 13, 2024, payable on November 27, 2024. The payment of future dividends depends on many factors, including internal estimates of future performance, then-current cash and short-term investments, and the Company’s need for funds.
Current wording
On April 25, 2025, the Company’s Board of Directors authorized a dividend of 18¢ per share to shareholders of record on May 16, 2025, payable on May 30, 2025. The payment of future dividends depends on many factors, including internal estimates of future performance, then-current cash and short-term investments, and the Company’s need for funds.
Previous wording
As of September 28, 2024, the Company had $61.5 million of United States Treasury instruments which mature within one year. The Company also invests available cash in a bank-managed money market fund that invests exclusively in United States Treasury instruments which mature within one year. At September 28, 2024, the Company’s investment in this money market fund totaled $27.0 million.
Current wording
As of March 29, 2025, the Company had $63.3 million of United States Treasury instruments which mature within one year. The Company also invests available cash in a bank-managed money market fund that invests exclusively in United States Treasury instruments which mature within one year. At March 29, 2025, the Company’s investment in this money market fund totaled $28.9 million.
Previous wording
During the nine months ended September 28, 2024 the Company purchased 698,759 shares of its common stock for $29.3 million in the open market. The average price per share purchased was $41.99. These purchases were funded with cash on hand. As of September 28, 2024, $45.3 million remained authorized for future stock repurchases.
Current wording
During the three months ended March 29, 2025 the Company purchased 79,200 shares of its common stock for $3.0 million in the open market. The average price per share purchased was $37.74. These purchases were funded with cash on hand. As of March 29, 2025, $37.3 million remained authorized for future stock repurchases.
Previous wording
The Company has 15 independent distributors that service the domestic commercial market. Additionally, the Company has 44 and 26 distributors servicing the export and law enforcement markets, respectively.
Current wording
The Company has 14 independent distributors that service the domestic commercial market. Additionally, the Company has 44 and 26 distributors servicing the export and law enforcement markets, respectively.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Net sales, cost of products sold, and gross profit data for the nine months ended (dollars in millions):
Previous report — wording carried elsewhere
The decrease in total consolidated net sales and net firearms sales for the nine months ended September 28, 2024 is attributable to decreased consumer demand for firearms. Sales of new products, including the Security-380 pistol, Super Wrangler revolver, Marlin lever-action rifles, LC Carbine, Small-Frame Autoloading Rifle, and American Centerfire Rifle Generation II, represented $113.3 million or 31.2% of firearm sales in the first nine months of 2024. New product sales include only major new products that were introduced in the past two years.
Previous report — wording carried elsewhere
Selling and general and administrative expenses data for the nine months ended (dollars in millions):
Previous report — wording carried elsewhere
Other income data for the nine months ended (dollars in millions):