Sturm Ruger & Company (RGR), a manufacturer of rugged and firearms for the commercial sporting market, has announced a 31.02 percent plunge in profit for the quarter ended Jun. 28, 2014.
The company earned $22.29 million or $1.12 a share in the second-quarter compared with $32.31 million or $1.63 a share a year ago. Analysts on average had predicted net income of $1.23 a share.
Revenue during the second-quarter declined 14.41 percent to $153.66 million from $179.53 million in the last year period.
Gross margin contracted by 662 basis points over the last year period to 32.77 percent. Total expenses as a percentage of revenues increased to 78.49 percent from 71.73 percent in the same period last year. That has resulted in contraction of 676 basis points in operating margins to 21.51 percent.
The company reported operating income of $33.05 million, compared with $50.75 million in the previous year period.
Cash Flow
Sturm Ruger & Co has generated cash of $35.58 million from operating activities during the first half, down 49.06 percent or $34.26 million when compared with the last year period. The company has generated 11.00 cents of operating cash flow in every sales dollar for the first half, down from 20.82 cents in the same period last year.
The company has spent $22.54 million cash to meet investing activities during the first half, as against cash outgo of $18.75 million in the last year period. It has made net capital expenditure of $22.54 million during the first half, which was higher by 20.22 percent or $3.79 million, from a year ago.
The company's free cash flow accounted for 36.64 percent of operating cash flow for the first half, compared with 73.15 percent in the last year period.
The company has spent $20.66 million cash to meet financing activities during the first half, as against cash outgo of $17.29 million in the last year period. It has raised net of $0.02 million by selling common stocks.
The company's cash dividend payment increased 15.66 percent or $2.71 million to $19.99 million. Dividend payment accounted for 56.19 percent of operating cash flow for the first half, compared with 24.75 percent in the same period previous year.
As on Jun. 28, 2014, the company's cash balance stood at $47.44 million, down 26.78 percent or $17.35 million from Jun. 29, 2013.
Working Capital
Sturm Ruger & Co has witnessed an increase in the working capital over the last one year. The company's working capital stood at $84.75 million as at Jun. 28, 2014, up $20.77 million or 32.45 percent from $63.98 million on Jun. 29, 2013. It registered an increase in current ratio to 2.29 as at Jun. 28, 2014 from 1.78 on Jun. 29, 2013.
Shares of the company rose $0.03 or 0.05 percent to close at $57.65 on Tuesday.
