Sturm, Ruger & Company, Inc. (RGR) has reported a 65.93 percent jump in profit for the quarter ended Oct. 01, 2016. The company has earned $19.85 million, or $1.03 a share in the quarter, compared with $11.96 million, or $0.62 a share for the same period last year. Revenue during the quarter surged 33.55 percent to $161.43 million from $120.87 million in the previous year period. Gross margin for the quarter expanded 299 basis points over the previous year period to 31.13 percent. Total expenses were 81.37 percent of quarterly revenues, down from 85.14 percent for the same period last year. This has led to an improvement of 377 basis points in operating margin to 18.63 percent.
Operating income for the quarter was $30.07 million, compared with $17.96 million in the previous year period.
Operating cash flow declines
Sturm, Ruger & Company, Inc. has generated cash of $85.39 million from operating activities during the nine month period, down 10.07 percent or $9.56 million, when compared with the last year period. The company has spent $23.04 million cash to meet investing activities during the nine month period as against cash outgo of $24.27 million in the last year period.
The company has spent $30.21 million cash to carry out financing activities during the nine month period as against cash outgo of $19.33 million in the last year period.
Cash and cash equivalents stood at $101.36 million as on Oct. 01, 2016, up 68.23 percent or $41.11 million from $60.25 million on Sep. 26, 2015.
Working capital increases sharply
Sturm, Ruger & Company, Inc. has recorded an increase in the working capital over the last year. It stood at $145.91 million as at Oct. 01, 2016, up 53.18 percent or $50.66 million from $95.25 million on Sep. 26, 2015. Current ratio was at 2.71 as on Oct. 01, 2016, up from 2.35 on Sep. 26, 2015.
Days sales outstanding went down to 35 days for the quarter compared with 40 days for the same period last year.
Days inventory outstanding has decreased to 18 days for the quarter compared with 39 days for the previous year period.
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