<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1995
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, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 06-0633559
- ----------------------------------- ----------------------------------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
Lacey Place, Southport, Connecticut 06490
- ---------------------------------------- ---------------------------------
(Address of principal executive offices) (Zip code)
(203) 259-7843
--------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
The number of shares outstanding of the issuer's common stock as of
October 31, 1995: Common Stock, $1 par value - 13,455,400.
Page 1 of 15
<PAGE> 2
INDEX
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE NO.
<S> <C>
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--September 30, 1995
and December 31, 1994 3
Condensed consolidated statements of income--Three months
ended September 30, 1995 and 1994; Nine months ended
September 30, 1995 and 1994 4
Condensed consolidated statements of cash flows--Nine months
ended September 30, 1995 and 1994 5
Notes to condensed consolidated financial statements--
September 30, 1995 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 6. Exhibit and Reports on Form 8-K 14
SIGNATURES 15
</TABLE>
- 2 -
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per-share data)
<TABLE>
<CAPTION>
September 30 December 31
1995 1994
---------------------------
(unaudited) (Note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,925 $ 7,719
Short-term investments 35,116 58,650
Trade receivables, less allowances
for doubtful accounts ($900) and
discounts ($139 and $650) 20,040 17,889
Inventories:
Finished products 7,152 1,672
Materials and products in process 35,827 25,432
-------- --------
42,979 27,104
Deferred income taxes 6,625 6,077
Prepaid expenses and other assets 1,665 1,123
-------- --------
TOTAL CURRENT ASSETS 109,350 118,562
PROPERTY, PLANT AND EQUIPMENT 111,286 95,158
Less allowances for depreciation 65,079 59,866
-------- --------
46,207 35,292
DEFERRED INCOME TAXES 4,801 4,532
OTHER ASSETS 11,952 11,106
-------- --------
$172,310 $169,492
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 2,974 $ 4,825
Accrued expenses 1,369 1,254
Product safety modifications 1,475 1,548
Product liability 3,000 3,000
Employee compensation 8,445 7,024
Workers' compensation 6,908 6,318
Income taxes 0 741
-------- --------
TOTAL CURRENT LIABILITIES 24,171 24,710
PRODUCT LIABILITY ACCRUAL 18,731 18,487
CONTINGENT LIABILITIES--Note 5 - -
STOCKHOLDERS' EQUITY
Common Stock, non-voting, par value $1:
Authorized shares 50,000; none issued
Common Stock, par value $1: Authorized shares -
20,000,000; issued and outstanding 13,455,400
and 13,452,400 13,455 13,452
Additional paid-in capital 2,380 2,283
Retained earnings 113,573 110,560
-------- --------
129,408 126,295
-------- --------
$172,310 $169,492
======== ========
</TABLE>
Note: The balance sheet at December 31, 1994 has been derived from the audited
financial statements at that date but does not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See notes to condensed consolidated financial statements.
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<PAGE> 4
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per-share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
------------------ ---------------------
<S> <C> <C> <C> <C>
Firearm Sales $32,180 $40,830 $113,664 $132,238
Casting Sales 9,906 4,112 23,921 12,311
------- ------- -------- --------
Net sales 42,086 44,942 137,585 144,549
Cost of products sold 34,586 30,048 98,352 91,645
------- ------- -------- --------
7,500 14,894 39,233 52,904
Expenses:
Selling 3,333 3,067 9,257 8,950
General and administrative 1,276 951 3,469 3,142
------- ------- -------- --------
4,609 4,018 12,726 12,092
------- ------- -------- --------
2,891 10,876 26,507 40,812
Other income-net, principally interest 628 746 2,203 1,817
------- ------- -------- --------
INCOME BEFORE INCOME TAXES 3,519 11,622 28,710 42,629
Income taxes 1,418 4,730 11,570 17,350
------- ------- -------- --------
NET INCOME $ 2,101 $ 6,892 $ 17,140 $ 25,279
======= ======= ======== ========
Net income per share $0.15 $0.51 $1.27 $1.88
===== ===== ===== =====
Cash dividends per share $0.35 $0.30 $1.05 $0.90
===== ===== ===== =====
</TABLE>
See notes to condensed consolidated financial statements.
- 4 -
<PAGE> 5
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
<TABLE>
<CAPTION>
Nine Months Ended September 30
1995 1994
------------------------------
<S> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES $ 1,926 $ 22,935
INVESTING ACTIVITIES
Property, plant and equipment additions (16,128) (6,546)
Purchases of short-term investments (113,823) (123,589)
Proceeds from sales or maturities of
short-term investments 137,357 113,267
-------- --------
Cash provided (used) by investing activities 7,406 (16,868)
FINANCING ACTIVITIES
Dividends paid (14,126) (12,107)
-------- --------
Cash used by financing activities (14,126) (12,107)
-------- --------
DECREASE IN CASH AND CASH EQUIVALENTS (4,794) (6,040)
Cash and cash equivalents at beginning of period 7,719 7,670
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 2,925 $ 1,630
======== ========
</TABLE>
See notes to condensed consolidated financial statements.
- 5 -
<PAGE> 6
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
September 30, 1995
NOTE 1--BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information and the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all adjustments, consisting of normal
recurring accruals, considered necessary for a fair presentation of the results
of the interim periods. Operating results for the nine months ended September
30, 1995 are not necessarily indicative of the results to be expected for the
full year ending December 31, 1995. For further information refer to the
consolidated financial statements and footnotes thereto included in the Sturm,
Ruger & Company, Inc. Annual Report on Form 10-K for the year ended December 31,
1994.
NOTE 2--INVENTORIES
An actual valuation of inventory under the LIFO method can be made
only at the end of each year based on the inventory levels and costs at that
time. Accordingly, interim LIFO calculations must necessarily be based on
management's estimates of expected year-end inventory levels and costs.
Because these are subject to many forces beyond management's control, interim
results are subject to the final year-end LIFO inventory valuation. At
September 30, 1995, inventory quantities used in the LIFO calculation were
greater than quantities on hand at the end of 1994.
NOTE 3--INCOME TAXES
The Company's effective tax rate differs from the statutory tax
rate principally as a result of state income taxes. Total income tax payments
during the nine months ended September 30, 1995 and 1994 were $13.5 million and
$22.7 million, respectively.
NOTE 4--NET INCOME PER COMMON SHARE
Net income per common share is based upon the weighted average
number of common shares and common stock equivalents outstanding during the
period. Common stock equivalents represent shares awarded pursuant to the
Company's Stock Bonus Plan. Common stock equivalents outstanding in 1995 and
1994 were immaterial.
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<PAGE> 7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)--CONTINUED
NOTE 5--CONTINGENT LIABILITIES
The Company is a defendant in approximately 22 lawsuits involving
product liability claims and is aware of other product liability claims which
allege defective product design. These lawsuits and claims are based
principally on the theory of "strict liability" but also may be based on
negligence, breach of warranty and other legal theories. In many of the
lawsuits, punitive damages, as well as compensatory damages, are demanded.
Aggregate claimed amounts presently exceed product liability accruals and, if
applicable, insurance coverage. Management believes that, in every case, the
allegations of defective product design are unfounded, and that the accident
and any results therefrom were due to negligence or misuse of the firearm by
the claimant or a third party and that there should be no recovery against the
Company.
The Company's management monitors the status of known claims and
the product liability accrual, which includes amounts for asserted and
unasserted claims. While it is difficult to forecast the outcome of these
claims, in the opinion of management, after consultation with special and
corporate counsel, the outcome of these claims will not have a material adverse
effect on the results of operations or financial condition of the Company.
The Company has reported all lawsuits instituted against it through
June 30, 1995 and the results of those lawsuits, where terminated, to the
S.E.C. on its Form 10-K and Form 10-Q reports, to which reference is hereby
made.
- 7 -
<PAGE> 8
ITEM 2. MANAGEMENTS'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Results of Operations
Consolidated net sales for the three and nine months ended
September 30, 1995 were $42.1 million and $137.6 which represented decreases of
6.4% and 4.8% from the respective 1994 consolidated net sales amounts of $44.9
million and $144.5 million.
Firearm segment net sales decreased by 21.2% and 14.0%,
respectively, to $32.2 million and $113.7 million in the third quarter and nine
months ended September 30, 1995 compared to $40.8 million and $132.2 million in
the corresponding 1994 periods. Decreases in firearm units shipments of 21.5%
and 16.3% were attributable to weak consumer demand for pistols which are
manufactured in the Company's Prescott, Arizona facility. Sales of firearms in
the other industry product categories of revolvers, rifles, and shotguns remain
strong with consumer demand for these products being substantially in excess of
the current production capacity of the Company's Newport, New Hampshire
facility. For the nine months ended September 30, 1995, production and shipments
of Newport produced firearm products were greater than that of 1994. A 65,000
square foot addition to the Newport facility completed earlier in 1995 has been
outfitted with machinery and the Company anticipates that additional production
increases of firearms will be realized during the fourth quarter of 1995.
Casting segment net sales increased by 140.9% and 94.3%,
respectively, to $9.9 million and $23.9 million in the third quarter and nine
months ended September 30, 1995 from $4.1 million and $12.3 million in the
corresponding 1994 periods. These increases, which partially offset the
decreases in firearms segment sales, were achieved primarily by Ruger
Investment Casting commencing the shipment of Great Big Bertha golf club heads
to Callaway Golf Company in the first quarter of 1995. The Company invested
considerable resources in late 1994 and throughout 1995 to significantly
increase the capacity of Ruger Investment Casting to produce Great Big Bertha
golf club heads and as a result started to realize greater production
quantities in the latter part of the third quarter of 1995. Further increases
in production quantities are anticipated in the fourth quarter of 1995.
The Company has entered into a Joint Venture Agreement with
Callaway Golf Company to collaborate in the construction of a new investment
casting foundry, Antelope Hills Foundry, for the production of titanium golf
club heads. Under the terms of this agreement, the Company has committed to
produce, and Callaway Golf Company has committed to purchase a quantity of
titanium golf club heads with sales prices totalling a minimum of approximately
$150 million in the years 1996 through 1998. Antelope Hills Foundry is
expected to be operational and commence production in the third quarter of
1996.
Consolidated cost of products sold for the three and nine months
ended September 30, 1995 were $34.6 million and $98.4 million which represented
increases of 15.1% and 7.3%, respectively, from corresponding 1994 amounts of
$30.0 million and $91.6 million. These increases are primarily from a number
of factors consisting of: unfavorable product firearms sales mix; costs
incurred by Ruger Investment Casting to expand capacity for production of
titanium golf club heads; inefficiencies from decreased firearm unit production
at the
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<PAGE> 9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
Company's Prescott, Arizona facility; increases in LIFO inventory costs and;
casting segment sales which have a lower gross profit percentage than firearm
sales increasing as a percentage of consolidated net sales.
During the third quarter the Company implemented certain steps to
reallocate production capacity from the Prescott Firearms facility.
Specifically the Company transferred skilled production employees and
manufacturing floor space to Ruger Investment Casting. The Company is also in
the process of implementing significant process changes in the manufacturing of
titanium golf club heads in an effort to increase both production and operating
margins.
As a result of the foregoing, gross profit as a percentage of net
sales decreased to 17.8% and 28.5% in the respective three and nine months
ending September 30, 1995 from 33.1% and 36.6% in the comparable 1994 periods.
Selling, general & administrative expenses for the three and nine
months ended September 30, 1995 increased by 14.7% and 5.2% to $4.6 million and
$12.7 million, respectively, from $4.0 million and $12.1 million in the
corresponding 1994 periods. These increases were primarily the result of the
settlement of a sales commission contract with an outside sales representative,
timing of the purchase of professional services, and the addition of a new
executive officer of the Company.
Other income-net decreased for the three months ended September 30,
1995 compared to the respective 1994 period primarily as a result of the
decrease in average fund balances available for investment. For the nine
months ended September 30, 1995 other income-net increased compared to the
corresponding 1994 period as a result of higher interest rates earned on funds
invested exceeding the effect of the decrease in the average fund balances
available for investment.
Financial Condition
At September 30, 1995, the Company had cash, cash equivalents and
short-term investments of $38.0 million, working capital of $85.2 million and a
current ratio of 4.5 to 1.
Cash provided by operating activities was $1.8 million and $22.9
million for the nine months ended September 30, 1995 and 1994, respectively.
This change in cash flows is principally a result of an increase in inventory
of $15.9 million in 1995 compared to a increase of $4.5 million in 1994 and a
decrease in net income in 1995 from 1994. The increase in inventory levels is
primarily from the Company's raw material purchases for the first nine months
of 1995 exceeding production requirements and an increase in pistol firearm
units.
The Company follows an industry-wide practice of offering a "dating
plan" to its customers on selected products, which allows the purchasing
distributor to buy the products commencing in December, the start of the
Company's dating plan year, and pay for them on extended terms. Discounts are
offered for early payment. The dating plan provides a revolving payment plan
under which payments for all shipments made during the period December through
March have to be made by April 30. Shipments made in subsequent months have to
be paid for within 90
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<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
days. Dating plan receivable balances were $5.5 million at September 30, 1995.
The Company has reserved the right to discontinue the dating plan at any time
and has been able to finance this dating plan from internally generated funds
provided by operating activities.
Capital expenditures during the nine months ended September 30,
1995 totaled $16.1 million and for the past two years averaged approximately
$3.7 million per quarter. A total of approximately $13.3 million was spent on
capital expenditures to upgrade, modernize and complete the expansion of the
Newport Firearm Division, significantly increase the capacity and expand the
Ruger Investment Casting Division, and for normal Company-wide improvements to
increase efficiency. Additional expenditures of approximately $2.4 million are
budgeted for the fourth quarter of 1995. The Company finances and intends to
continue to finance, all of these activities with funds provided by operations.
Capital expenditures totaling $2.8 million have also been made in
the third quarter of 1995 to commence the construction and outfitting of the
Antelope Hills Foundry facility. The Company anticipates investing up to $14
million in the next twelve months in the facility under the terms of the Joint
Venture Agreement with Callaway Golf Company. Financing of these capital
expenditures will be made 50% by the Company using funds provided by operations
and 50% from Callaway Golf Company.
For the nine months ended September 30, 1995, dividends paid
totaled $14.1 million. This amount reflects the regular quarterly dividend of
$.35 per share paid on March 15, June 15, and September 15, 1995. On October
24, 1995 the Company declared a regular quarterly dividend of $.35 per share
payable on December 15, 1995. Future dividends depend on many factors,
including internal estimates of future performance and the Company's need for
funds.
Historically, the Company has not required external financing.
Based on its cash flow and unencumbered assets, the Company believes it has the
ability to raise substantial amounts of short-term or long-term debt. The
Company does not anticipate any need for external financing through 1995.
The purchase of firearms is subject to federal, state and local
governmental regulations. The basic federal laws are the National Firearms Act
and the Federal Firearms Act. These laws generally prohibit the private
ownership of fully automatic weapons and place certain restrictions on the
interstate sale of firearms unless certain licenses are obtained. The Company
does not manufacture fully automatic weapons, other than for the law
enforcement market, and holds all necessary licenses under these federal laws.
From time to time, congressional committees review proposed bills relating to
the regulation of firearms. These proposed bills generally seek either to
restrict or ban the sale and, in some cases, the ownership of various types of
firearms, or to impose a mandatory waiting period prior to their purchase.
Several states currently have laws in effect similar to the aforementioned
legislation.
The "Brady Law", mandating a nationwide 5-day waiting period prior
to the purchase of a handgun, was signed into law in November, 1993 and became
effective February 28, 1994. The Company believes that, because its customers
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<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
are sportsmen, hunters, gun collectors and law enforcement agencies and since
26 states had previously enacted some form of a waiting period prior to
purchase, the "Brady Law" has not had a significant effect on the Company's
sales of firearms. The Crime Bill took effect on September 13, 1994, but none
of the Company's products were banned as so-called "assault weapons." To the
contrary, all the Company's currently-manufactured long guns have been exempted
by name as "legitimate sporting firearms." A separate provision of the Crime
Bill prohibited production or sale of detachable magazines of over 10-round
capacity manufactured after September 13, 1994, other than to law enforcement.
Only two such magazines (9mm and .40 caliber) were commercially sold by the
Company, and production of substitute 10-round magazines in these calibers
(approved by the BATF) has begun. No significant delays in shipments resulted
from these magazine changes. Nevertheless, the Company remains strongly
opposed to laws which would unduly restrict the rights of law-abiding citizens
to acquire firearms for legitimate purposes. The Company believes that the
private ownership of firearms is guaranteed by the Second Amendment to the
United States Constitution and that the widespread private ownership of
firearms in the United States will continue. However, there can be no
assurance that the regulation of firearms will not become more restrictive in
the future and that any such restriction would not have a material adverse
effect on the business of the Company.
The Company has expended significant amounts of financial resources
and management time in connection with product liability litigation. While it
is difficult to forecast the outcome of litigation or the timing of costs,
management believes, after consultation with counsel, that this litigation will
not have a material adverse effect on the financial condition of the Company.
The Company is not aware of any adverse trends in its litigation as a whole.
In the normal course of its manufacturing operations, the Company
is subject to occasional governmental proceedings and orders pertaining to
waste disposal, air emissions and water discharges into the environment. The
Company believes that it is generally in compliance with applicable
environmental regulations and the outcome of such proceedings and orders will
not have a material adverse effect on its business.
The Company expects to realize its deferred tax assets through tax
deductions against future taxable income or carry-back against taxes previously
paid.
Inflation's effect on the Company's operations is most immediately
felt in cost of products sold because the Company values inventory on the LIFO
basis. Generally under this method, the cost of products sold reported in the
financial statements approximates current costs, and thus, reduces distortion
in reported income which would result from the slower recognition of increased
costs when other methods are used. The use of historical cost depreciation has
a beneficial effect on cost of products sold. The Company has been affected by
inflation in line with the general economy. Thus far in 1995, the rate of
inflationary cost was comparable with the same 1994 period.
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<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
Recent Developments
In October 1995 the Company announced a special sales discount on
most firearm pistol models. This program, which reduces the average selling
price of these pistols by 10% to 30%, is designed to renew customer interest in
pistols and reduce the Company's finished goods inventory levels. The Company
anticipates that almost all pistols sold in the fourth quarter of 1995 will be
at these discounted prices and that quantities sold under the program will be
significantly greater than sales would have been if this program had not been
implemented. The impact of this program on the fourth quarter operating
results cannot be predicted by the Company at the present time, but is expected
to result in slightly higher earnings than selling significantly less
quantities of pistols at regular selling prices.
- 12 -
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
"Note 5--Contingent Liabilities" presented in Part I is incorporated herein by
reference.
Four lawsuits were instituted against the Company during the three
months ended September 30, 1995, which involved significant demands for
compensatory and/or punitive damages:
Constance Clark, Individually and as Personal Representative of the
Estate of Michael Clark vs. Sturm, Ruger & Company, Inc. et. al., in the Montana
Eighth Judicial District Court, Cascade County. The complaint alleges that on
or about January 23, 1994, the plaintiff's decedent was fatally injured when a
.22 caliber revolver discharged when it was allegedly dropped. Punitive
damages to be proven at trial are sought.
Joseph Stutler, Individually and as Successor in Interest/Special
Administrator of the Estate of Decedent Jennifer Stutler vs. Sturm, Ruger &
Company, Inc. et. al., in the Superior Court of the State of California for the
county of Madera. The complaint alleges that on or about July 29, 1994, the
plaintiff's decedent was fatally injured by a .44 magnum revolver.
Compensatory damages to be proven at trial are sought.
Anthony Bochene vs. Sturm, Ruger & Company, Inc. and Remington Arms
Co., Inc., in the Superior Court of the State of California in and for the
County of Sacramento. The complaint alleges that on or about July 28, 1994,
the plaintiff suffered injuries to his nervous system resulting in hearing loss
when his rifle allegedly exploded while he was firing it. General and
compensatory damages in the amount of $35,000 are demanded.
Michael C. Jordan vs. Sturm, Ruger & Company, Inc. et. al., in the
Circuit Court State of Wisconsin, Racine county. The complaint alleges that on
or about August 5, 1992, the plaintiff suffered facial cuts when his rifle
allegedly exploded while he was target practicing. General damages are
demanded.
During the three months ending September 30, 1995, the following
previously reported lawsuits were settled:
<TABLE>
<CAPTION>
Name Jurisdiction
---- ------------
<S> <C>
Curtis North Carolina
Shuey Pennsylvania
</TABLE>
These lawsuits were settled for amounts within the insurance limits
and/or self-insured retention of the Company.
The above reported new case of Stutler vs. Company (CA), which
involved a Ruger New Model single action revolver, was voluntarily withdrawn
with prejudice by plaintiff on August 28, 1995.
- 13 -
<PAGE> 14
PART II. OTHER INFORMATION--CONTINUED
The case of Forni vs. Ferguson, et. al. (NY), which involved the
intentional homicide of a Long Island Railroad passenger by Colin Ferguson
using a Ruger pistol, was dismissed by the trial court on all counts as to the
Company on August 2, 1995. A notice of appeal has been filed by plaintiff.
The case of Weber vs. Company, (TX), which involved a claimed
accidental death while handling an "old model" Ruger single action revolver,
was tried to a complete defense verdict on September 21, 1995. The jury
unanimously found no design defect, no marketing defect, no failure to warn,
and no negligence on the part of the Company in the conduct of its ongoing free
safety retrofit of pre-1973 "old model" single action revolvers. No appeal has
been filed.
The 1993 jury verdict in favor of the Company in the case of
Connolly vs. Company (CA) was affirmed en toto by the California Court of
Appeals on July 13, 1995. Plaintiff has petitioned the California Supreme
Court for leave to take further appeal.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - None.
(b) The Company did not file any reports on Form 8-K during the three
months ended September 30, 1995.
- 14 -
<PAGE> 15
STURM, RUGER & COMPANY, INC.
FORM 10-Q FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
STURM, RUGER & COMPANY, INC.
-------------------------------------
Date November 14, 1995 /s/ JOHN M. KINGSLEY, JR.
------------------ -------------------------------------
John M. Kingsley, Jr.
Principal Financial and
Accounting Officer,
Executive Vice President
- 15 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 2,925
<SECURITIES> 35,116
<RECEIVABLES> 21,079
<ALLOWANCES> 1,039
<INVENTORY> 42,979
<CURRENT-ASSETS> 109,350
<PP&E> 111,286
<DEPRECIATION> 65,079
<TOTAL-ASSETS> 172,310
<CURRENT-LIABILITIES> 24,171
<BONDS> 0
<COMMON> 13,455
0
0
<OTHER-SE> 115,953
<TOTAL-LIABILITY-AND-EQUITY> 172,310
<SALES> 137,585
<TOTAL-REVENUES> 137,585
<CGS> 98,352
<TOTAL-COSTS> 98,352
<OTHER-EXPENSES> 12,726
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 28,710
<INCOME-TAX> 11,570
<INCOME-CONTINUING> 17,140
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,140
<EPS-PRIMARY> 1.27
<EPS-DILUTED> 1.27
</TABLE>
