Sturm, Ruger & Co. Inc. (NYSE:RGR) Q4 2015 Earnings Conference Call - Final Transcript

Feb 25, 2016 • 09:00 am ET

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Sturm, Ruger & Co. Inc. (NYSE:RGR) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Sturm, Ruger & Company Fourth Quarter 2015 Earnings Conference Call. My name is Mark and I'll be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the conference over to your host for today, Michael Fifer, Chief Executive Officer. Please proceed, sir.

Executive
Michael O. Fifer

Thank you. Good morning and welcome to the Sturm, Ruger & Company year-end 2015 conference call. I'd like to ask Kevin Reid, our General Counsel, to read the caution on forward-looking statements, which will be followed by a quick overview of 2015, including the fourth quarter, and then we can get right into your questions. Kevin?

Executive
Kevin B. Reid

Thanks, Mike. We want to remind everyone that 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 Forms 10-Q for the first, second, and third quarters of 2015. Copies of these documents may be obtained by contacting the company or the SEC or of course on the company's website at www.ruger.com 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 on our Form 10-K for the year-ended December 31, 2015, and our Forms 10-Q for the first three quarters of 2015, which also are posted to our website. Furthermore, the company disclaims all responsibility to update forward-looking statements. Mike?

Executive
Michael O. Fifer

Thank you, Kevin. Financial results. For 2015, net sales were $551.1 million and fully diluted earnings were $3.21 per share. For 2014, net sales were $544.5 million and fully diluted earnings were $1.95 per share. In the fourth quarter of 2014, the company recorded an expense of $41 million related to the termination and settlement of its defined-benefit pension plan. Excluding this expense, 2014's fully diluted earnings were $3.22 per share.

For the fourth quarter of 2015, net sales were $152.4 million and fully diluted earnings were $0.88 per share. For the corresponding period in 2014, net sales were $122.6 million and the company realized a loss of $0.77 per share. Excluding the aforementioned defined-benefit pension plan expense, fourth quarter 2014 fully diluted earnings were $0.53 per share.

Our 2015 EBITDA was $132.5 million or 24% of sales and our 2014 EBITDA was $126.3 million or 23% of sales. For the fourth quarter of 2015, our EBITDA was $36 million or 24% of sales. These results compare favorably to our fourth quarter of 2014 EBITDA of $17.3 million or 14% of