<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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 March 31, 1997
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)
<TABLE>
<CAPTION>
Delaware 06-0633559
- ------------------------------------------------ -----------------------------------
<S> <C>
(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)
</TABLE>
(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
requirements for the past 90 days. Yes X No
----
The number of shares outstanding of the issuer's common stock as of
April 30, 1997: Common Stock, $1 par value - 26,916,800.
Page 1 of 14
<PAGE> 2
INDEX
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--March 31, 1997 and
December 31, 1996 3
Condensed consolidated statements of income--Three months ended
March 31, 1997 and 1996 5
Condensed consolidated statements of cash flows--Three months
ended March 31, 1997 and 1996 6
Notes to condensed consolidated financial statements--March 31, 1997 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
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>
March 31, December 31,
1997 1996
----------------- ------------------
(unaudited) (Note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 8,005 $ 2,729
Short-term investments 42,596 30,652
Trade receivables, less allowances for
doubtful accounts ($774 and $834) and
discounts ($462 and $1,095) 19,156 21,074
Inventories:
Finished products 11,423 11,895
Materials and products in process 36,173 43,173
----------------- ------------------
47,596 55,068
Deferred income taxes 7,393 7,949
Prepaid expenses and other assets 960 1,690
----------------- ------------------
TOTAL CURRENT ASSETS 125,706 119,162
PROPERTY, PLANT AND EQUIPMENT 119,562 118,497
Less allowances for depreciation (76,420) (74,330)
-----------------
------------------
43,142 44,167
DEFERRED INCOME TAXES 4,063 4,672
INVESTMENT IN JOINT VENTURE 10,640 10,586
OTHER ASSETS 11,284 11,303
----------------- ------------------
$194,835 $189,890
================= ==================
</TABLE>
3
<PAGE> 4
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>
March 31, December 31,
1997 1996
----------------- ------------------
(unaudited) (Note)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable and accrued expenses $ 3,238 $ 4,628
Product safety modifications 1,271 1,302
Product liability 3,000 3,000
Employee compensation 8,744 8,312
Workers' compensation 6,142 6,108
Income taxes 4,130 595
----------------- ------------------
TOTAL CURRENT LIABILITIES 26,525 23,945
PRODUCT LIABILITY ACCRUAL 19,218 19,218
CONTINGENT LIABILITIES --Note 6 - -
STOCKHOLDERS' EQUITY
Common Stock, non-voting, par value $1:
Authorized shares 50,000; none issued
Common Stock, par value $1: Authorized shares -
40,000,000; issued and outstanding 26,916,800 26,917 26,917
Additional paid-in capital 2,514 2,514
Retained earnings 119,661 117,296
----------------- ------------------
149,092 146,727
----------------- ------------------
$194,835 $189,890
================= ==================
</TABLE>
Note:
The balance sheet at December 31, 1996 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.
4
<PAGE> 5
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
----------------------------------------
<S> <C> <C>
Firearms sales $42,152 $47,560
Castings sales 12,936 17,997
----------------- -----------------
Net sales 55,088 65,557
Cost of products sold 38,352 43,089
----------------- -----------------
16,736 22,468
Expenses:
Selling 3,159 3,166
General and administrative 876 1,554
----------------- -----------------
4,035 4,720
----------------- -----------------
12,701 17,748
Other income-net, principally interest 169 775
----------------- -----------------
INCOME BEFORE INCOME TAXES 12,870 18,523
Income taxes 5,122 7,409
----------------- -----------------
$ 7,748 $11,114
NET INCOME ================= =================
Net income per share $0.29 $0.41
===== =====
Cash dividends per share $0.20 $0.20
===== =====
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE> 6
STURM, RUGER & COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31,
1997 1996
---------------------------------------
<S> <C> <C>
CASH PROVIDED BY OPERATING ACTIVITIES $ 23,722 $ 15,879
INVESTING ACTIVITIES
Property, plant and equipment additions (1,065) (1,870)
Purchases of short-term investments (43,313) (41,372)
Proceeds from sales or maturities of
short-term investments 31,369 35,819
Investment in joint venture (54) (1,861)
------------------ ------------------
Cash used in investing activities (13,063) (9,284)
------------------ ------------------
FINANCING ACTIVITIES
Dividends paid (5,383) (5,382)
------------------ ------------------
Cash used by financing activities (5,383) (5,382)
------------------ ------------------
INCREASE IN CASH AND CASH EQUIVALENTS 5,276 1,213
Cash and cash equivalents at beginning of period 2,729 3,633
------------------ ------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 8,005 $ 4,846
================== ==================
</TABLE>
See notes to condensed consolidated financial statements.
6
<PAGE> 7
STURM RUGER & COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
March 31, 1997
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 three months ended March 31,
1997 are not necessarily indicative of the results to be expected for the full
year ending December 31, 1997. 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, 1996.
NOTE 2--SIGNIFICANT ACCOUNTING POLICIES
Organization: Sturm, Ruger & Company, Inc. ("Company") is principally
engaged in the design, manufacture, and sale of firearms and investment
castings. The Company's design and manufacturing operations are located in the
United States. Substantially all sales are domestic. The Company's firearms are
sold through a select number of distributors to the sporting and law enforcement
markets. Investment castings are sold either directly to or through
manufacturers' representatives to companies in a wide variety of industries.
Use of Estimates: The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
Principles of Consolidation: The consolidated financial statements
include the accounts of the Company and its wholly owned subsidiaries. A joint
venture, Antelope Hills, LLC, of which the Company owns 50%, is accounted for
using the equity method. All significant intercompany accounts and transactions
have been eliminated.
NOTE 3--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.
7
<PAGE> 8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)--CONTINUED
NOTE 4--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 three months ended March 31, 1997 and 1996 were $.4 million and $2.5
million, respectively.
NOTE 5--NET INCOME PER COMMON SHARE
Net income per common share is based upon the weighted average number
of common shares outstanding during the period.
On July 24, 1996, the Board of Directors declared a two-for-one stock
split in the form of a 100% stock dividend which was distributed on September
16, 1996 to stockholders of record on August 15, 1996. All share and per share
amounts have been adjusted to reflect this split.
NOTE 6--CONTINGENT LIABILITIES
The Company is a defendant in approximately 16 lawsuits involving
product liability claims which allege defective product design and is aware of
other product liability claims. 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 shooting 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
December 31, 1996 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.
8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Consolidated net sales of $55.1 million were achieved by the Company in
the first quarter of 1997. This represents a decrease of $10.5 million or 16.0%
from the first quarter of 1996 consolidated net sales of $65.6 million.
Firearms segment net sales were $42.2 million in the first quarter of
1997 compared to $47.6 million in the corresponding 1996 period, a decrease of
$5.4 million or 11.4%. Firearms unit shipments decreased 14.7% reflecting
continuing reduced overall market demand, particularly in the industry product
categories of revolvers and rifles, which are manufactured in the Newport, New
Hampshire facility. These reductions were offset somewhat by stronger than
expected sales during the quarter of pistols manufactured in the Company's
Prescott, Arizona facility. Special incentive programs introduced previously are
continuing for discounts of 10% of the sales price of certain pistol models.
Additionally, new incentive programs for selected revolver models were
introduced for the calendar year 1997, and a special 1% overall incentive
program for customers exceeding specific sales targets based on prior year
volumes was announced in December 1996 for the marketing year 1997. Shipments
also began in limited quantities of certain new firearms models, including the
new Ruger Bisley-Vaquero. The Company anticipates sales levels of pistols will
exceed 1996 levels for the first 6 months of 1997, while the shipments of rifles
and revolvers for the first half of 1997 will be less than the similar period in
1996.
Casting segment net sales decreased by 28.1% from $18.0 million in the
first quarter of 1996 to $12.9 million in the first quarter of 1997. This was
due to decreased shipments of Great Big Bertha titanium golf club heads to
Callaway Golf Company, Inc. ("Callaway Golf"). In March 1997, the Company
announced that it had agreed to stretch out the delivery schedule of golf club
heads pursuant to the August 1996 Callaway Golf order from completion in October
1997 to completion in September 1998. In return, the Company was released from
the provision of its agreement with Callaway Golf which prohibited the Company
from producing titanium golf club heads for any golf club customer other than
Callaway Golf. The extension of the delivery times of the August 1996 order will
shift some anticipated 1997 revenues into 1998, and therefore will affect 1997
castings sales and operating results. However, the Company feels that this
agreement is beneficial as it allows the Company the flexibility to actively
seek additional customers for titanium golf club heads while maintaining its
current business with Callaway Golf. New business could utilize capacity
available at Ruger Investment Casting ("RIC"). The Company is actively pursuing
other titanium markets as well as other golf club casting business. The Company
anticipates castings sales will remain at first quarter levels through the
second quarter of 1997.
Consolidated cost of products sold for the first quarter of 1997 was
$38.4 million compared to $43.1 million for the first quarter of 1996, a
decrease of $4.7 million or 11.0%. This was primarily attributable to decreased
sales activities by both the firearms and investment casting segments as
detailed above.
Gross profit as a percentage of net sales decreased to 30.4% in the
first quarter of 1997 from 34.3% in the comparable 1996 period. The decrease is
due to the reduced overall volume of business in both the firearms and castings
segments. Although variable costs were reduced during the period in
9
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
response to the changes in sales volumes, the impact of fixed costs associated
with operating the Company facilities resulted in reduced gross profit margins
from the like period in 1996.
Selling, general & administrative expenses decreased by 14.5% to $4.0
million in the first quarter of 1997 from $4.7 million in the first quarter of
1996. This decrease reflects lower than anticipated employee benefit plan
expenses as well as reduced professional services fees for the period.
Other income decreased in the first quarter of 1997 compared to the
corresponding 1996 period due to the elimination of royalty income related to
the licensed use of the "Ruger Titanium"(R) trademark for titanium golf club
head castings, as well as reduced earnings on Treasury bill investments.
The effective income tax rate decreased to 39.8% in the first quarter
from 40.0% in the comparable 1996 quarter due to lower state income taxes.
As a result of the foregoing factors, consolidated net income for the
first quarter of 1997 decreased to $7.7 million from $11.1 million for the first
quarter of 1996 or by $3.4 million and 30.3%.
Financial Condition
At March 31, 1997, the Company had cash, cash equivalents and
short-term investments of $50.6 million, working capital of $99.2 million and a
current ratio of 4.7 to 1.
Cash provided by operating activities was $23.7 million and $15.9
million for the three months ended March 31, 1997 and 1996 respectively. This
change in cash flows is principally a result of reductions in inventories and
trade receivables, offset by lower net income from operations.
The Company follows an industry-wide practice of offering a "dating
plan" to its firearms 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 days. Dating plan receivable balances were $5.8 million at
March 31, 1997 as compared to $7.4 million at March 31, 1996. 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 three months ended March 31, 1997
totaled $1.1 million. For the past two years capital expenditures averaged
approximately $2.4 million per quarter. For 1997, the Company expects to spend
approximately $8.0 million on capital expenditures to upgrade and modernize
equipment at the Newport Firearms, Pine Tree Castings, and Ruger Investment
Casting Divisions. Additional funds are committed for the introduction of new
metal matrix composite infiltration processes at the Uni-Cast Division. The
Company finances, and intends to continue to finance, all of these activities
with funds provided by operations.
10
<PAGE> 11
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
During the quarter, the construction and outfitting of the foundry for
Antelope Hills, LLC located in Prescott, Arizona was completed. Antelope Hills,
LLC is a joint venture between Callaway Golf and the Company formed to construct
and operate an investment casting foundry to produce titanium golf club heads.
The Company's investment in this project amounted to approximately $10.6 million
at March 31, 1997. Although no orders have been received for production
quantities of club heads for this facility, negotiations between the Company and
Callaway Golf continue. The Company does not expect any contribution to earnings
from the joint venture during the second quarter of 1997.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share," which changes the methodology of calculating earnings per share. SFAS
No. 128 requires the disclosure of diluted earnings per share regardless of its
difference from basic earnings per share. The Company plans to adopt SFAS No.
128 in December 1997. Early adoption is not permitted. Had the Company adopted
SFAS No. 128 as of March 31, 1997, the related per share disclosure for both
basic and diluted earnings per share would have remained as previously reported
for the quarters ended March 31, 1997 and March 31, 1996.
For the three months ended March 31, 1997 dividends paid totaled $5.4
million. This amount reflects the regular quarterly dividend of $.20 per share
paid on March 15, 1997. 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 1997.
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" mandates a nationwide 5-day waiting period prior to the
purchase of a handgun. The Company believes that, because its customers 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 then-manufactured long guns were 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
11
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS--CONTINUED
commercially sold by the Company, and production of substitute 10-round
magazines in these calibers (approved by the BATF) began immediately. 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.
Forward-Looking Statements and Projections
The Company may from time to time make forward-looking statements and
projections concerning future expectations. Such statements are based on current
expectations and are subject to certain qualifying risks and uncertainties such
as market demand and sales levels of pistols, rifles, and revolvers for the
first half of 1997, anticipated castings sales and earnings contributions from
the joint venture through the second quarter of 1997, the need for external
financing for operations or capital expenditures, the results of pending
litigation against the Company, and the impact of future firearms control and
environmental legislation, which would cause actual results to differ materially
from these projected. Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date made and the Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date such forward-looking statements
are made or to reflect the occurrence of unanticipated events.
12
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
"Note 6--Contingent Liabilities" presented in Part I is incorporated herein by
reference.
The following two cases were instituted against the Company during the
three months ended March 31, 1997, which involved significant demands for
compensatory and/or punitive damages:
Sheila Southward, etc. et al. Plaintiffs vs. Anthony James Neely, in
the Circuit Court of Cook County, Illinois County Department, Law Division on
March 3, 1997. The complaint alleges that on or about April 15, 1994, a 9mm
pistol held by Neely discharged, resulting in the fatal injury of Maritta Green.
Plaintiff is seeking third party damages in an amount equal to the judgment
amount (if any) obtained by Green's estate against him for negligently shooting
Green.
M. Keith Clark vs. Sturm, Ruger & Company, Inc., in the United States
District Court of South Carolina, Spartanburg Division on February 26, 1997. The
complaint alleges that on or about March 6, 1994, the plaintiff suffered
injuries to his left calf and right thigh when his .44 magnum revolver
discharged when it was allegedly dropped. Actual and punitive damages are
demanded.
During the three months ending March 31, 1997, one previously reported
case was settled:
Name Jurisdiction
---- ------------
Pierson Michigan
This case was settled for an amount within the insurance limits and/or
self-insured retention of the Company.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
Exhibit 27 - Financial Data Schedule
(b) The Company did not file any reports on Form 8-K during the
three months ended March 31, 1997.
13
<PAGE> 14
STURM, RUGER & COMPANY, INC.
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 1997
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: May 13, 1997 /s/ ERLE G. BLANCHARD
------------------------------
Erle G. Blanchard
Principal Financial and
Accounting Officer,
Vice President, Controller
14
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<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 8,005
<SECURITIES> 42,596
<RECEIVABLES> 20,392
<ALLOWANCES> 1,236
<INVENTORY> 47,596
<CURRENT-ASSETS> 125,706
<PP&E> 119,562
<DEPRECIATION> 76,420
<TOTAL-ASSETS> 194,835
<CURRENT-LIABILITIES> 26,525
<BONDS> 0
0
0
<COMMON> 26,917
<OTHER-SE> 122,175
<TOTAL-LIABILITY-AND-EQUITY> 194,835
<SALES> 55,088
<TOTAL-REVENUES> 55,088
<CGS> 38,352
<TOTAL-COSTS> 38,352
<OTHER-EXPENSES> 4,035
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 12,870
<INCOME-TAX> 5,122
<INCOME-CONTINUING> 7,748
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,748
<EPS-PRIMARY> 0.29<F1>
<EPS-DILUTED> 0.29<F1>
<FN>
<F1>EPS ADJUSTED FOR 2-FOR-1 STOCK SPLIT
</FN>
</TABLE>
