EX-99.1 2 ex99-1.htm EX-99.1

EXHIBIT 99.1

Caution: Forward Looking Statements Statements made in the course of this meeting that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are forward - looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward - looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward - looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s reports on Form 10 - K for the year ended December 31, 2015 and Form 10 - Q for the fiscal quarter ended April 2, 2016. Copies of these documents may be obtained by contacting the Company or the SEC or on the Company website at www.ruger.com /corporate/ or the SEC website at www.sec.gov . We reference non - GAAP EBITDA. Please note that the reconciliation of GAAP net income to non - GAAP EBITDA can be found in our Form 10 - K for the year ended December 31, 2015 and our Form 10 - Q for the quarter ended April 2 , 2016, which are also posted on our website . Furthermore , the Company disclaims all responsibility to update forward - looking statements .

- 100 200 300 400 500 600 700 2012 2011 2010 2009 2008 2007 2013 Q1 2016 2014 2015 Quarterly Sell - Through (in Thousands of Units)

Quarterly Financial Results (in Millions, Except EPS) 2016 2015 Q1 Q4 Q3 Q2 Q1 Revenues $173.1 $152.4 $120.9 $140.9 $137.0 Gross Margin $59.1 $48.2 $34.0 $48.5 $41.4 Operating Profit $36.2 $26.0 $18.0 $26.7 $23.8 21% 17% 15% 19% 17% EPS $1.21 $0.88 $0.62 $0.91 $0.81 EBITDA $44.8 $36.0 $27.1 $36.2 $33.2 26% 24% 22% 26% 24% Trailing 12 - Months Ending April 2, 2016 Sales $581 Million Operating Profit 18% EBITDA 23% EPS $3.61 EBITDA PER SHARE $7.12

Direct Labor as % of Sales Value of Production * $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 5% 6% 7% 8% 9% 10% 11% 2010 2011 2012 2013 2014 2015 2016 * Sales Value of Production (SVP) in Millions.

Non - Personnel Overhead as a % of SVP * $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 0% 5% 10% 15% 20% 25% 2010 2011 2012 2013 2014 2015 2016 * Sales Value of Production (SVP) in Millions.

U.S. Firearm Availability (In Millions of Units) 0 2 4 6 8 10 12 14 16 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Interim

Monthly Adjusted NICS (In Thousands) - 500 1,000 1,500 2,000 2,500 December 2011 December 2010 December 2012 December 2013 December 2014 December 2015

Trends in Retail Demand The adjusted National Instant Criminal Background Check System data presented above was adjusted by the National Shooting Sports Foundation to eliminate background checks associated with permit checks rather than firearm sales. 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2,200 8 10 12 14 16 18 20 22 24 Distributor Sell - Through NICS Checks Ruger 184% Growth Since 2008 NICS 58% Growth Since 2008 2012 2011 2010 2009 2008 2013 2014 2015

Raw & WIP Inventory Turns (Based on Cost of SVP) - 1 2 3 4 5 6 7 8 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 I mprovement in i nventory t urns has a llowed us to avoid the growth in Raw & WIP inventory. Over the past 5 years, we avoided growth in $19 m illion in Raw & WIP inventory. Over the past 10 years, we avoided growth in $175 m illion in Raw & WIP inventory.

- 100 200 300 400 500 600 700 2012 2011 2010 2009 2008 2007 2013 Q1 2016 2014 2015 Quarterly Sell - Through (in Thousands of Units) Q1 2014 Q3 2014 Q3 2015 Sell - Through 9,100/day

Quarterly Finished Goods Unit Inventory (in Thousands) 0 50 100 150 200 250 300 350 400 Ruger 72,800 2014 2013 2012 2011 2010 2015 Q1 2016

Quarterly Finished Goods Unit Inventory (in Thousands) 0 50 100 150 200 250 300 350 400 Ruger 72,800 Distributors 216,700 2014 2013 2012 2011 2010 2015 Q1 2016

Quarterly Finished Goods Unit Inventory (in Thousands) 0 50 100 150 200 250 300 350 400 Ruger 72,800 Target Distributor Inventory At 6 turns = 315,000 Distributors 216,700 2014 2013 2012 2011 2010 2015 Q1 2016

Disciplined Stock Repurchases Total Dollars Total Shares Price Per Share Q3 2006 $25.2 4,272,000 $5.90 Q4 2007 $20.0 2,216,000 $8.99 Q3 & Q4 2008 $10.2 1,535,000 $6.57 Q3 2010 to Q1 2011 $7.7 545,400 $14.10 Q4 2015 & Q1 2015 $26.7 762,100 $35.15 Total $89.8 9,330,500 $9.62

Disciplined Stock Repurchases $- $10 $20 $30 $40 $50 $60 $70 $80 - 2 4 6 8 10 12 Feb-09 Jul-09 Dec-09 May-10 Oct-10 Mar-11 Aug-11 Jan-12 Jun-12 Nov-12 Apr-13 Sep-13 Feb-14 Jul-14 Dec-14 May-15 Oct-15 Mar-16 Stock Price TTM EBITDA Multiple $26.7 Million 762,100 Shares $ 35.15/Share $7.7 Million 545,400 Shares $ 14.10/Share

Cash (in Millions) -$15 $5 $25 $45 $65 $85 $105 $125 Special Dividend - $87 Million Stock Repurchase - $25 Million Stock Repurchase - $20 Million Stock Repurchase - $27 M illion 2012 2011 2010 2009 2008 2007 2013 Q1 2016 2014 2015 2006

Variable Quarterly Dividends (in Millions) $- $2 $4 $6 $8 $10 $12 $14

Recent 5 - Year Returns: Ruger vs. Russell 2000 0% 200% 400% 600% 800% 1000% 1200% 1400% 2010 2011 2012 2013 2014 2015

Investor Communications We anticipate releasing 2016 quarterly earnings and holding investor conference calls on the following dates: Earnings Release Conference Call Q2 2016 August 2, 2016 August 3, 2016 Q3 2016 November 1, 2016 November 2, 2016 Q4 2016 February 21, 2017 February 22, 2017

Caution: Forward Looking Statements Statements made in the course of this meeting that state the Company’s or Management’s intentions, hopes, beliefs, expectations or predictions of the future are forward - looking statements. It is important to note that the Company’s actual results could differ materially from those projected in such forward - looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward - looking statements is contained from time to time in the Company’s SEC filings, including but not limited to the Company’s reports on Form 10 - K for the year ended December 31, 2015 and Form 10 - Q for the fiscal quarter ended April 2, 2016. Copies of these documents may be obtained by contacting the Company or the SEC or on the Company website at www.ruger.com /corporate/ or the SEC website at www.sec.gov . We reference non - GAAP EBITDA. Please note that the reconciliation of GAAP net income to non - GAAP EBITDA can be found in our Form 10 - K for the year ended December 31, 2015 and our Form 10 - Q for the quarter ended April 2 , 2016, which are also posted on our website . Furthermore , the Company disclaims all responsibility to update forward - looking statements .