Sturm, Ruger & Co. Inc. (NYSE:RGR) Q2 2017 Earnings Conference Call - Final Transcript
Aug 03, 2017 • 09:00 am ET
Good day, ladies and gentlemen. And welcome to the Sturm Ruger Second Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only-mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today's program is being recorded.
I would now like to introduce your host for today's program, Chris Killoy, President and Chief Executive Officer. Please go ahead.
Christopher J. Killoy
Thank you. Good morning, and welcome to the Sturm, Ruger & Company second quarter 2017 conference call. I'd like to ask Kevin Reid, our General Counsel to read the caution on forward-looking statements. Then Tom Dineen, our Chief Financial Officer will give an overview of the second quarter financial results. And then I will share my thoughts on the strength of market, discussion our operations and provide an update on our organization transition. And then we'll get to your questions.
Kevin, let's get started.
Thanks, Chris. 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 our Form 10-K for the year ended December 31, 2016 and Form 10-Q for the fiscal quarter ended July 1, 2017. Copies of these documents may be obtained by contacting the company or the SEC or on the company website at ruger.com/corporate or SEC website at 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, 2016 and of course our Form 10-Q for the quarter ended July 1, 2017, which also are posted on our website. Furthermore, the company disclaims all responsibility to update the forward-looking statements.
Christopher J. Killoy
Thank you, Kevin. Now Tom will provide a financial summary of the second quarter.
Thomas A. Dineen
Thanks, Chris. For the second quarter of 2017, net sales were $131.9 million, and diluted earnings were $0.57 per share. For the comparable prior year period, net sales were $167.9 million and diluted earnings of $1.22 per share. For the first half of 2017, net sales were $299.2 million and diluted earnings were $1.79 per share. For the corresponding period in 2016, net sales were $341.1 million and diluted earnings were $2.44 per share.
For the second quarter of 2017 our EBITDA was $25 million or 19% of sales, compared to $45.1 million or 27% of sales in the second quarter of 2016. At July 1, 2017, our cash and cash equivalents totaled $44 million. Our current ratio is 2.7 to 1 and we have no debt. At July 1, 2017, stockholders