by Joseph P. Tartaro | Executive Editor
Sturm, Ruger & Company has announced that for 2014 the company had annual net sales of $544.5 million and fully diluted earnings of $1.95 per share, compared with net sales of $688.3 million and fully diluted earnings of $5.58 per share in 2013.
For the fourth quarter of 2014, Ruger’s net sales were $122.6 million and the company realized a fully diluted loss of $0.77 per share. For the corresponding period in 2013, net sales were $181.9 million and fully diluted earnings were $1.33 per share.
Also in the fourth quarter of 2014, Ruger recorded an expense of $41.0 million related to the termination and settlement of its defined benefit pension plans. Excluding this expense, 2014 net income was $64.0 million or $3.22 per share, and fourth quarter 2014 net income was $10.5 million or 53¢ per share. The cash requirement for the termination and settlement of the defined benefit pension plans was $7.5 million.
Ruger CEO Michael O. Fifer made the following observations related to the company’s 2014 performance:
“The strong demand experienced in 2013 remained through the first quarter of 2014 and much of the second quarter of 2014. However, during the latter half of 2014 demand for our products declined significantly, as a result of the following: the reduction in overall consumer demand; high inventory levels at retail, which encouraged retailers to buy fewer firearms than they were selling, in an effort to reduce their inventories and generate cash: aggressive price discounting by many of the company’s competitors, and the lack of significant new product introductions from the company.”
“In 2014, sales to the independent distributors and the estimated sell-through of the company’s products from the independent distributors to retailers decreased 21% and 20%, respectively, from 2013. The National Instant Criminal Background Check System (NICS) background checks (as adjusted by the National Shooting Sports Foundation [NSSF]) decreased 12% in 2014 from 2013.
“Demand for higher-margin firearms accessories, especially magazines, which was very strong in 2013, softened in the first half of 2014 and then decreased significantly in the latter half of 2014.
- Excluding the expense related to latest NICS numbers, February 2015, as adjusted by NSSF totaled 1,280,825 checks, the second highest February on record for the 16-year-old system. There was actually an increase of 1.3 percent compared to the February 2014 NSSF-adjusted NICS figure of 1,264,010. For comparison, the unadjusted February 2015 NICS figure of 1,848,308 reflects a 10.9% decrease from the unadjusted February 2014 figure of 2,073,978.
More Acquisitions
Signature Products Group (SPG) has announced the acquisition of Black Rhino™ brand of hand tools, which has been providing customers with an extensive variety of high quality hand tools, ladders and safety glasses.
“We are thrilled about this acquisition; since 1998 Black Rhino™ has been selling quality tools their customers have been proud to carry. We are excited about the opportunity to marry these quality products with the high caliber brands of Realtree and Mossy Oak,” said SPG CEO Dusty Zundel.
SPG will immediately offer over 300 of the most popular and best performing Black Rhino™ hand tool, glove, and safety glass products. Then, in the summer of 2015, SPG will launch an exciting addition to the Black Rhino™ line, which will include approximately 100 SKUs of Black Rhino™ hand tools accented with Mossy Oak® or Realtree® camouflage, a license that is exclusive to SPG.
“We’re excited to be the first to bring branded camouflage tools to the tool market, which represents both a great challenge and an immensely exciting opportunity,” Zundel added.
The hardware, housewares and DIY industriesa will get their first look at the new product line in May at the National Hardware Show in Las Vegas.
SPG is the official licensee of products for Browning®, Realtree®, Mossy Oak®, Ducks Unlimited®, Major League Bowhunter, Under Armour®, Dirty Bird™, Bone Collector®, Hard Core™, and Big Rack.
Ares Armor has been acquired by Lake House Capital Management, Lake House Capital Management, LLC, a Hinsdale, IL-based holding company, which acquired all the assets of Lycurgan, Inc., (doing business as Ares Armor). Specific terms of the deal were not disclosed at this time.
Veteran US Marine Dimitri Karras, who served tours in both Iraq and Afghanistan, founded Ares Armor in 2010. Headquartered in Oceanside, CA, Ares Armor is the leading supplier of 80 percent lower receivers, and develops and manufactures high quality American-made firearm parts so that American customers can legally build their own firearms. The business also proudly develops, manufactures, and sells innovative tactical gear, combat body armor, and more.
Bryce Stirlen and Dimitri Karras.
“We thank and respect Dimitri Karras for his patriotism, service, and defense of our country and its Constitution,” says new Ares Armor CEO Bryce Stirlen. “We value his vision and efforts with Ares Armor, and truly wish him all the best in his future roles in the company.”
Ares Armor customers can expect to experience no disruption in quality or service during the management transition. But like when anyone buys a house, Lake House Capital Management has much it loves about Ares Armor, but also has some areas where it wants to make changes and add its own touches.
“Great people and great products have built Ares Armor into the successful business it is today,” adds Stirlen, a gun enthusiast, husband, and father. “Our main focus is to now build a better foundation to support the explosive growth the company is experiencing.”
Karras will continue with the company and continue his ongoing struggle with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Blast from the Past
Hunter’s Specialties® has introduced two new Retro Series diaphragm calls that combine the classic look of the popular H.S. Strut® calls from the past with the engineering advancements of the 21st century.
Retro Series Diaphragm Calls use Hunter’s Specialties’ Premium Flex™ frames with Infinity Latex® to create a long-lasting and highly realistic sounding call. Two Retro Series Diaphragm Calls are available for 2015. The Split V II features two ultra-thin reeds for excellent yelps and purrs, and the Split V III features three ultra-thin reeds for excited cutting and yelping.
The Split V II and Split V III calls sell for a suggested retail price of $8.99 each. For more information, about these or other Hunter’s Specialties products, visit online at: hunterspec.com, or call a consumer service specialist at 319-395-0321.
