Sturm, Ruger & Company, Inc (RGR) has reported a 40.80 percent jump in profit for the year ended Dec. 31, 2016. The company has earned $87.47 million, or $4.59 a share in the year, compared with $62.13 million, or $3.21 a share for the last year.
Revenue during the year grew 20.55 percent to $664.33 million from $551.09 million in the previous year. Gross margin for the year expanded 181 basis points over the previous year to 33.05 percent. Total expenses were 79.77 percent of annual revenues, down from 82.84 percent for the last year. This has led to an improvement of 308 basis points in operating margin to 20.23 percent.
Operating income for the year was $134.41 million, compared with $94.54 million in the previous year.
Operating cash flow declines
Sturm, Ruger & Company, Inc has generated cash of $104.80 million from operating activities during the year, down 6.90 percent or $7.77 million, when compared with the last year.
The company has spent $34.89 million cash to meet investing activities during the year as against cash outgo of $28.48 million in the last year. It has incurred net capital expenditure of $34.89 million on net basis during the year, up 22.49 percent or $6.41 million from year ago.
The company has spent $52.01 million cash to carry out financing activities during the year as against cash outgo of $23.76 million in the last year period.
Cash and cash equivalents stood at $87.13 million as on Dec. 31, 2016, up 25.86 percent or $17.90 million from $69.22 million on Dec. 31, 2015.
Working capital increases sharply
Sturm, Ruger & Company, Inc has recorded an increase in the working capital over the last year. It stood at $142.73 million as at Dec. 31, 2016, up 33.04 percent or $35.45 million from $107.28 million on Dec. 31, 2015. Current ratio was at 2.76 as on Dec. 31, 2016, up from 2.31 on Dec. 31, 2015.
Days sales outstanding went down to 34 days for the year compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 22 days for the year compared with 37 days for the previous year period.
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